In the context of national income, which of the following is included in GDP but not in NNP? MCQ with Answer and Explanation

In the context of national income, which of the following is included in GDP but not in NNP?
A. Net factor income from abroad
B. Net indirect taxes
C. Depreciation
D. Subsidies
Answer: Option C
Solution (By JKSSB Mock Tests)
GDP includes depreciation (capital consumption). NNP is obtained by subtracting depreciation from GNP. Thus depreciation is part of GDP but not of NNP.

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Practice More Economy Set 1 Questions

Question #1
The 'Budget Division' in India is a part of which ministry?
A. NITI Aayog
B. Ministry of Finance
C. Ministry of Commerce
D. Ministry of Statistics

Correct Answer: Option B


Explanation:
Budget Division is part of the Department of Economic Affairs, Ministry of Finance.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Taylor rule' is used by central banks to set:
A. policy interest rates based on inflation and output gap
B. foreign exchange reserves
C. reserve requirements
D. exchange rates

Correct Answer: Option A


Explanation:
The Taylor rule prescribes setting policy interest rates based on inflation and output gap.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'shoe-leather cost' of inflation refers to:
A. cost of buying shoes
B. cost of unemployment
C. cost of holding less cash and making more frequent trips to banks
D. cost of imports

Correct Answer: Option C


Explanation:
Shoe-leather cost is the cost associated with reducing money holdings to avoid inflation.

This question belongs to: Economy GK Economy Set 1