UPSC CSE Prelims
Question 29
The national income of a country for a given period is equal to the
View correct answer and explanation
Correct answer: D
Correct Option: D
Explanation: The intended national-income measure is the value of final goods and services produced during a period, avoiding double-counting of intermediate inputs.
Option-wise Analysis:
A: Incorrect - Incomplete: production by nationals may refer to GNP but needs precise valuation and accounting for net factor income.
B: Incorrect - Wrong: consumption plus investment omits government and net external spending in expenditure accounting.
C: Incorrect - Wrong: aggregate personal income is not the same as national income.
D: Correct - Correct in the exam’s simplified sense: value of final goods and services is the output-accounting basis.
Review Note: Strictly, “money value of final goods and services produced” describes GDP; national income conventionally refers to NNP at factor cost (with cross-border income and depreciation adjustments). Preserve supplied answer D with this qualification.