{"id":85525,"date":"2025-06-01T03:19:48","date_gmt":"2025-06-01T03:19:48","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=85525"},"modified":"2025-06-01T03:19:48","modified_gmt":"2025-06-01T03:19:48","slug":"which-one-of-the-following-statements-is-not-correct-for-national-inco","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-is-not-correct-for-national-inco\/","title":{"rendered":"Which one of the following statements is not correct for National Inco"},"content":{"rendered":"

Which one of the following statements is not correct for National Income Accounting for India?<\/p>\n

[amp_mcq option1=”Imports are subtracted in calculating Gross Domestic Product.” option2=”Net factor payments earned from abroad are included in Gross Domestic Product.” option3=”Purchase and sale of second-hand goods are not included in Gross Domestic Product.” option4=”Inventories are included in Gross Domestic Capital Formation.” correct=”option2″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC CDS-1 – 2024<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nStatement B is incorrect. Net factor payments earned from abroad are included when calculating Gross National Product (GNP) or Net National Product (NNP), not Gross Domestic Product (GDP). GDP measures the value of goods and services produced within the geographical boundaries of a country, regardless of who owns the factors of production.
\n<\/section>\n
\nGDP is a measure of production within the domestic territory. GNP is a measure of production by the residents of a country. The difference is Net Factor Income from Abroad (NFIA). NFIA = Factor income earned by residents from abroad – Factor income paid to non-residents in the domestic territory.
\n<\/section>\n
\nA) Imports are subtracted in calculating GDP using the expenditure method (C+I+G+X-M) as they represent spending on goods\/services produced elsewhere.
\nC) Purchase and sale of second-hand goods are not included in GDP as they do not represent current production. Their value was already accounted for in the GDP of the year they were produced.
\nD) Change in inventories (unsold goods held by firms) is considered as investment (part of Gross Domestic Capital Formation) and is included in GDP calculation as it represents production that occurred within the period.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

Which one of the following statements is not correct for National Income Accounting for India? [amp_mcq option1=”Imports are subtracted in calculating Gross Domestic Product.” option2=”Net factor payments earned from abroad are included in Gross Domestic Product.” option3=”Purchase and sale of second-hand goods are not included in Gross Domestic Product.” option4=”Inventories are included in Gross Domestic … <\/p>\n

Detailed SolutionWhich one of the following statements is not correct for National Inco<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1087],"tags":[1103,1120,1174],"class_list":["post-85525","post","type-post","status-publish","format-standard","hentry","category-upsc-cds-1","tag-1103","tag-economic-development","tag-national-income-gross-domestic-product","no-featured-image-padding"],"yoast_head":"\nWhich one of the following statements is not correct for National Inco<\/title>\n<meta name=\"description\" content=\"Statement B is incorrect. Net factor payments earned from abroad are included when calculating Gross National Product (GNP) or Net National Product (NNP), not Gross Domestic Product (GDP). GDP measures the value of goods and services produced within the geographical boundaries of a country, regardless of who owns the factors of production. GDP is a measure of production within the domestic territory. GNP is a measure of production by the residents of a country. The difference is Net Factor Income from Abroad (NFIA). NFIA = Factor income earned by residents from abroad - Factor income paid to non-residents in the domestic territory.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-is-not-correct-for-national-inco\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which one of the following statements is not correct for National Inco\" \/>\n<meta property=\"og:description\" content=\"Statement B is incorrect. Net factor payments earned from abroad are included when calculating Gross National Product (GNP) or Net National Product (NNP), not Gross Domestic Product (GDP). GDP measures the value of goods and services produced within the geographical boundaries of a country, regardless of who owns the factors of production. GDP is a measure of production within the domestic territory. GNP is a measure of production by the residents of a country. The difference is Net Factor Income from Abroad (NFIA). NFIA = Factor income earned by residents from abroad - Factor income paid to non-residents in the domestic territory.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-is-not-correct-for-national-inco\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T03:19:48+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Which one of the following statements is not correct for National Inco","description":"Statement B is incorrect. Net factor payments earned from abroad are included when calculating Gross National Product (GNP) or Net National Product (NNP), not Gross Domestic Product (GDP). GDP measures the value of goods and services produced within the geographical boundaries of a country, regardless of who owns the factors of production. GDP is a measure of production within the domestic territory. GNP is a measure of production by the residents of a country. The difference is Net Factor Income from Abroad (NFIA). NFIA = Factor income earned by residents from abroad - Factor income paid to non-residents in the domestic territory.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-is-not-correct-for-national-inco\/","og_locale":"en_US","og_type":"article","og_title":"Which one of the following statements is not correct for National Inco","og_description":"Statement B is incorrect. Net factor payments earned from abroad are included when calculating Gross National Product (GNP) or Net National Product (NNP), not Gross Domestic Product (GDP). GDP measures the value of goods and services produced within the geographical boundaries of a country, regardless of who owns the factors of production. GDP is a measure of production within the domestic territory. GNP is a measure of production by the residents of a country. The difference is Net Factor Income from Abroad (NFIA). NFIA = Factor income earned by residents from abroad - Factor income paid to non-residents in the domestic territory.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-is-not-correct-for-national-inco\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T03:19:48+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-is-not-correct-for-national-inco\/","url":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-is-not-correct-for-national-inco\/","name":"Which one of the following statements is not correct for National Inco","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T03:19:48+00:00","dateModified":"2025-06-01T03:19:48+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"Statement B is incorrect. Net factor payments earned from abroad are included when calculating Gross National Product (GNP) or Net National Product (NNP), not Gross Domestic Product (GDP). GDP measures the value of goods and services produced within the geographical boundaries of a country, regardless of who owns the factors of production. GDP is a measure of production within the domestic territory. GNP is a measure of production by the residents of a country. The difference is Net Factor Income from Abroad (NFIA). NFIA = Factor income earned by residents from abroad - Factor income paid to non-residents in the domestic territory.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-is-not-correct-for-national-inco\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-is-not-correct-for-national-inco\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-statements-is-not-correct-for-national-inco\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC CDS-1","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-cds-1\/"},{"@type":"ListItem","position":3,"name":"Which one of the following statements is not correct for National Inco"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/85525","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=85525"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/85525\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=85525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=85525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=85525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}