Which of the following pairs of aggregate and its description is correctly matched?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → NDP at market prices – how much the country has to spend just to maintain its current GDP
Each aggregate in the table of basic national income aggregates has its own description.
Option (1) NDP at market prices – how much the country has to spend just to maintain its current GDP — Correct. NDPMP tells policy-makers how much the country has to spend just to maintain its current GDP.
Option (2) GDP at factor cost – a measure of how much a country can consume in a given period — Incorrect. How much a country can consume describes NNP at market prices.
Option (3) GNP at factor cost – income earned by the factors within the domestic territory — Incorrect. Income of factors within the domestic territory is NDP at factor cost.
Option (4) NNP at market prices – value of output received by the factors of production belonging to a country — Incorrect. Output received by the factors belonging to a country is GNP at factor cost.
NCERT (2026-27): “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. …” “Table 2.4: Basic National Income Aggregates This is a measure of how much a country can consume in a given period of time. …” “Table 2.4: Basic National Income Aggregates GNP at factor cost measures value of output received by the factors of production belonging to a country in a year.” |