Skip to content

CA Foundation · Business Economics · Determination of National Income

Which of the following is included while measuring national income by the product (output) method in India?

Farm produce consumed by the producer's own household is included, valued at imputed market prices, because it is part of current production. Second-hand goods, share transactions and pensions are excluded as they are not current output.

  1. AValue of agricultural produce consumed by the farmer's own householdCorrect
  2. BSale of a second-hand car
  3. CPurchase of shares in the stock market
  4. DPension received by a retired government employee

Explanation

Output retained for self-consumption is included at imputed market value because it is current production of goods. Second-hand sales, share purchases and pensions (transfer payments) are not current production and are excluded.

Did you get it right without looking?

One question tells you little. A timed set on Determination of National Income shows your real accuracy, how long you take and where you lose marks.

Practise Determination of National IncomeFree diagnostic mock

More Determination of National Income questions