Q. Consider the following statements regarding National Disposable Income and Private Income:
1.National Disposable Income includes net current transfers from abroad in addition to the Net National Product at market prices.
2.Private Income includes factor income from the net domestic product, national debt interest, and current transfers from the government.
Which of the above statements is/are correct?
Quarterly-SFG-Jan-to-March
Red Book

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C
Notes:

Explanation:

  • National Disposable Income is calculated by adding other current transfers from abroad to Net National Product at market prices.
  • Private Income includes factor income from the net domestic product, national debt interest, and current transfers from the government.

Source- 12th NCERT: Economics: Macroeconomics

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