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National income is based on the
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- total revenue of the state
- production of goods and services
- net profit earned and expenditure made by the state.
- the sum of all factors of income
Correct Option: B
National Income is based on the production of goods and services. A variety of measure of national income and output are used in economics to estimate total economic activity in a country or region, including gross domestic product (GDP), gross national product (GNP), net national income (NNI), and adjusted national income (NNI* adjusted for natural resource depletion). All are specially concerned with counting the total amount of goods and services produced within some "boundary".
