1. What is National Income?
National Income is the total value of all final goods and services produced in a country in one year, measured in money terms.
It shows the size and strength of an economy.
हिंदी: National Income = एक साल में देश के अंदर बनने वाले final goods और services का
कुल मूल्य (money में) – इससे पता चलता है कि देश कितना “कमाता” है।
2. Important Concepts (Simple NDA View)
2.1 GDP – Gross Domestic Product
GDP = Total value of all final goods and services produced within the domestic territory of a country in one year.
Does not matter who produces (Indians or foreigners) – if production is inside the country, it counts in GDP.
2.2 GNP – Gross National Product
GNP = GDP of a country + net income from abroad.
It includes production by **nationals** (citizens) whether in India or outside,
and excludes income of foreigners inside India.
हिंदी Trick:
GDP = Where produced (देश की boundary के अंदर)
GNP = Who produced (देश के लोग, चाहे जहाँ भी हों)
2.3 NNP – Net National Product
When we subtract **depreciation** (wear and tear of machines, buildings etc.) from GNP:
NNP = GNP – Depreciation
It shows net production after accounting for used-up capital.
NNP = GNP – Depreciation
It shows net production after accounting for used-up capital.
2.4 Per Capita Income (PCI)
Per Capita Income =
National Income ÷ Population
It shows average income per person – often used to compare living standards.
It shows average income per person – often used to compare living standards.
हिंदी: Per Capita Income = “प्रति व्यक्ति औसत आय” –
कुल आय / कुल लोग → जितनी ज्यादा, उतना उच्च जीवन स्तर (साधारण तौर पर)।
3. Real vs Nominal GDP
Nominal GDP:
- Measured at current year prices.
- Affected by both production and price changes.
- Measured at base year prices.
- Shows true change in production by removing effect of inflation.
4. Use of National Income Data
- To know economic growth (GDP growth rate).
- To compare countries (GDP, PCI).
- To plan policies for employment, poverty reduction etc.
📘 Practice Questions (NDA Style)
1. GDP measures the value of goods and services produced:
a) By nationals of a country
b) Within the domestic territory of a country
c) Outside the country only
d) By government sector only
2. GNP is equal to:
a) GDP + Net factor income from abroad
b) GDP – Net factor income from abroad
c) National income – Depreciation
d) GDP × Population
3. Per Capita Income is calculated as:
a) GDP ÷ Exports
b) National Income ÷ Population
c) GNP ÷ Imports
d) Savings ÷ Investment
4. NNP is obtained by:
a) Adding depreciation to GNP
b) Subtracting depreciation from GNP
c) Subtracting exports from GNP
d) Adding population to GDP
5. Real GDP is:
a) GDP at current prices
b) GDP at base year prices
c) GDP plus inflation
d) GDP minus exports
a) By nationals of a country
b) Within the domestic territory of a country
c) Outside the country only
d) By government sector only
2. GNP is equal to:
a) GDP + Net factor income from abroad
b) GDP – Net factor income from abroad
c) National income – Depreciation
d) GDP × Population
3. Per Capita Income is calculated as:
a) GDP ÷ Exports
b) National Income ÷ Population
c) GNP ÷ Imports
d) Savings ÷ Investment
4. NNP is obtained by:
a) Adding depreciation to GNP
b) Subtracting depreciation from GNP
c) Subtracting exports from GNP
d) Adding population to GDP
5. Real GDP is:
a) GDP at current prices
b) GDP at base year prices
c) GDP plus inflation
d) GDP minus exports
Answers:
1 – b) Within the domestic territory of a country
2 – a) GDP + Net factor income from abroad
3 – b) National Income ÷ Population
4 – b) Subtracting depreciation from GNP
5 – b) GDP at base year prices
1 – b) Within the domestic territory of a country
2 – a) GDP + Net factor income from abroad
3 – b) National Income ÷ Population
4 – b) Subtracting depreciation from GNP
5 – b) GDP at base year prices
Quick Recap | सार
Now you should be able to:
- Recall the most important ideas of this topic.
- Solve typical NDA-style questions from this chapter.
- Spot and avoid common traps used in competitive exams.
Self-check: 3–4 random questions उठा कर देखिए – अगर आसानी से हो रहे हैं, तो chapter strong है।
Common Exam Mistakes | आम गलतियाँ
- Concept ठीक से clear न करना और सीधे रटने की कोशिश करना।
- Question पूरी तरह पढ़े बिना answer mark कर देना।
- Figures, dates, या formulas को last step में verify न करना।
NDA में smart strategy यह है कि आसान वाले सवाल पहले, doubtful बाद में – और silly mistakes से बचना सबसे ज़रूरी है।