The correct answer is A. Rs. 59,400.
National income is the total income earned by all factors of production in a country in a given period of time. It is calculated by adding up the following components:
- Personal income: This is the income earned by individuals from all sources, including wages, salaries, interest, dividends, and rents.
- Undistributed profit: This is the profit that is not paid out to shareholders in the form of dividends.
- Corporate tax: This is the tax that corporations pay on their profits.
- Transfer payments: These are payments made by the government to individuals, such as Social Security benefits and unemployment benefits.
To calculate national income, we start with personal income and add undistributed profit. We then subtract corporate tax and transfer payments. This gives us the following equation:
National income = Personal income + Undistributed profit – Corporate tax – Transfer payments
In this case, we are given the following information:
- Personal income = Rs. 62,000
- Undistributed profit = Rs. 400
- Corporate tax = Rs. 1,000
- Transfer payments = Rs. 2,000
Substituting these values into the equation, we get:
National income = Rs. 62,000 + Rs. 400 – Rs. 1,000 – Rs. 2,000 = Rs. 59,400
Therefore, the national income is Rs. 59,400.
Option B is incorrect because it is the sum of personal income and undistributed profit. Option C is incorrect because it is the sum of personal income and corporate tax. Option D is incorrect because it is the sum of personal income, undistributed profit, and transfer payments.