In the table of basic national income aggregates, which aggregate is described as a measure of how much a country can consume in a given period of time?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → NNP at market prices
NNP at market prices is GNP minus depreciation. With wear and tear of capital taken out, it shows how much a country can consume in a period.
NCERT (2026-27): “Table 2.4: Basic National Income Aggregates This is a measure of how much a country can consume in a given period of time. NNP measures output regardless of where that production has taken place (in domestic territory or abroad).” “Table 2.4: Basic National Income Aggregates This measure allows policy-makers to estimate how much the country has to spend just to maintain their current GDP. If the country is not able to replace the capital stock lost through depreciation, then GDP will fall.” |