UPSC Prelims 2013 · GS Paper I
Question 99: Economy and Social Development
The national income of a country for a given period is equal to the
AnswerUPSC’s answer is (d).
National income is the money value of the final goods and services produced in a country in a year. Counting only final goods avoids double counting of intermediate goods. Consumption plus investment is only part of total expenditure, and the sum of personal incomes leaves out undistributed profits and taxes. Option (a) does not stress final goods, so it can include intermediate production.
Why each option is right or wrong
- (a) Wrong, in UPSC's view. It does not say that only final goods are counted.
- (b) Wrong. Consumption plus investment omits government spending and net exports.
- (c) Wrong. Personal income is a different measure from national income.
- (d) Correct. National income is the money value of final goods and services produced.
Worth knowing: Option (a) is also close, since national income is counted for a country's nationals; UPSC's key chose (d) for its stress on final goods.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2013, General Studies Paper I, Series A. The paper on upsc.gov.in.