|Consider the following statements regarding National Income:|
|1. National Income is the monetary value of the total goods and services produced in the country.|
|2. In India National Income is calculated and published by Central Statistical Organisation (CSO).|
|3. Production Method, Income method and Expenditure Method are three methods that are used to calculate National Income.|
|4. National income helps us to know the economic progress achieved and to make comparative study. Which of the following choice is correct?|
A) 1 and 2
B) 1 and 4
C) 1, 2 and 3
D) 1, 2, 3 and 4
Correct Answer: D
Solution :Since 1955 the national income estimates are being prepared by Central Statistical Organisation. The Central Statistical Organisation has divided Indian economy into three basic sector for the purpose of evaluation of various data. They are Primary sector comprising agriculture, forestry, fishing, mining and quarrying. Secondary sector comprising manufacturing, power generation, gas and water supply and Tertiary sector comprising transport, communication and trade, banking insurance, computer software, public administration, defence and external trade. The CSO uses different methods like the Product Method, Income Method and Expenditure method for various sectors in the process of estimating the National Income. National Income may be calculated on current prices or at constant prices. Currently, the base year for measuring national income and per capita income at constant prices is 2004 - 05, introduced in Jan 2010.
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