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National Income & Related Concepts


Direct and applied questions can be asked from this topic for prelims. Here, one has to be very clear about the various indicators of national income, differences between each indicator and the core definition.

Further, it can be seen that trend related questions have been asked twice and almost of the same nature. So one needs to understand what has been the trend with respect to GDP, Net factor income from abroad and the Per capita income. Besides, with all the debate going on around with regard to the changed indicators, one needs to acquaint oneself thoroughly with all measures of national income.


  1. GDP
  2. GNP
  3. NDP
  4. NNP
  6. Computation of National Income in India.
  7. Indian Scenario
  8. GDP calculations
  9. Rate of GDP
  10. Why India chose GDP over GNP etc.
  • Sanjeev Verma – Unique Publishers-Chapter 1
  • Introductory Macro Economics –NCERT Class XII- Chapter 2
  • Economic Survey 2015-2016
  • Latest topics must be read from Businessline or Business Standard.

[2011 Prelims]

1) In the context of Indian economy, consider the following statements:

  1. The growth rate of GDP has steadily increased in the last five years.
  2. The growth rate in per capita income has steadily increased in the last five years.

Which of the statements given above are correct?

  1. 1only
  2. 2 only
  3. Both
  4. None

[Similar question is asked in 2015 prelims question paper also].

[2013 Prelims]

1)Economic growth in country X will necessarily have to occur if

  1. There is technical progress in the world economy
  2. There is population growth in X
  3. There is capital formation in X
  4. The volume of trade grows in the world economy.

2)The national income of a country for a given period is equal to the

  1. Total value of goods and services produced by the nationals
  2. Sum total of total consumption and investment expenditure.
  3. Sum of personal income of all individuals.
  4. Money value of final goods and services produced.

[this is direct question on definition of National income]

[2015 Prelims]

1) A decrease in tax to GDP ratio of a country indicates which of the following?

  1. Slowing economic growth rate
  2. Less equitable distribution of national income.

Select the correct answers from the options given below.

  1. 1 only
  2. 2 only
  3. Both
  4. None

[ It is an applied question on the concept of GDP, which requires thorough understanding of the topic]

2)With reference to Indian Economy consider the following statements.

  1. The rate of growth of Real GDP has steadily increased in the last decade.
  2. The GDP at market prices has steadily increased in the last decade.

Which of the statements given above are correct?

  1. 1 only
  2. 2 only
  3. Both
  4. None

[ An understanding of the trends in GDP is essential for answering this]