A) National income at constant prices
B) Per capita income
C) National income at current prices
D) Net factor income
Correct Answer: A
Solution :
[a] The expressions like national income at constant prices and national income at current prices are very often used in national income analysis. Constant price refers to the price ruling in the market in the base year. For example if we calculate national income in India for (2015-2016) according to the ruling prices in the year (2011-2012 prices), we are said to calculate our country's national income for the year (2015-2016) at constant prices. Correct prices on the other hand, refers to the prices ruling in the market during the year in which goods are produced and for which estimation of income is to be made. For example if the national income of India for year (2015-2016) is calculated on the basis of the ruling market prices of (2015-2016), we get National income at current prices. Every country measures national income both at current prices and constant prices but it is the national income at constant prices which indicates real change in national income. Currently, the base year for measuring national income and per capita income at constant prices is 2011-2012, introduced in Jan 2015.
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