national income & human development index section 3 MCQ Questions & Answers Detailed Explanation

Answer: (d)

NNP at factor cost is equivalent to national income. Net National Product at factor cost is the aggregate payments made to the factors of production.

NNP at FC is the total incomes earned by all the factors of production in the form of wages, profits, rent, interest etc. plus net factor income from abroad.

Answer: (b)

Personal income = direct taxes + fees+ fines+ social security contribution by employers.

The amount of money that households have available for spending and saving after income taxes have been accounted for.

Disposable personal income is often monitored as one of the many key economic indicators used to gauge the overall state of the economy. Disposable income is total personal income minus personal current taxes.

Disposable Personal Income is the amount of money that households have avail see for spending & saving after income taxes have been counted for.

P.I = Direct taxes + fees + fines + social society contribution by employees

Answer: (d)

Private income arising in a country does not include current payments on foreign loans.

Private income includes any type of income received by a private individual or household, often derived from occupational activities, or income of an individual that is not in the form of a salary (e.g. income from investments).

Thus private income includes factor income from the net domestic product, net factor income from abroad & current transfers from the government.

Private income = Domestic product accruing to the private sector + Net factor income from abroad + Net other transfer income.

Answer: (a)

Answer: (a)

Answer: (d)

Agriculture (crops) and allied sectors are like forestry, logging and fishing. Food processing is not included in the Agriculture and allied services of Indian Economy.