FEATURE OF NATIONAL INCOME AND CIRCULAR FLOW

What does national income represent?

• Income of the economy as a whole

• Income of individuals

• Income from government taxes

• Income from foreign investments

Why are only final goods and services considered in national income?

• To assess government revenue

• To measure individual income

• To avoid double counting

• To include all production costs

What is excluded from the calculation of national income?

• Final goods

• Net income from abroad

• Depreciation costs

• Intermediate goods

What does national income include regarding foreign transactions?

• Only exports

• Only imports

• Net income from abroad

• Total foreign investments

What is the financial year for national income in India?

• 1st April to 31st March

• 1st January to 31st December

• 1st July to 30th June

• 1st June to 31st May

What type of concept is national income considered?

• Flow concept

• Static concept

• Stock concept

• Fixed concept

In what terms is national income expressed?

• Monetary terms

• Physical units

• Qualitative terms

• Percentage terms

What does the term 'depreciation cost' refer to in national income?

• Total production costs

• Wear and tear of capital assets

• Increase in asset value

• Government spending

Which of the following is NOT included in national income?

• Intermediate goods

• Net income from abroad

• Final goods

• Services

What is the primary purpose of calculating national income?

• To determine tax rates

• To assess economic performance

• To measure individual wealth

• To evaluate government spending