Match List-I with List-II:
| List-I | List-II | ||
|---|---|---|---|
| (A) | National Disposable Income | (I) | GVA at factor cost + Net production taxes |
| (B) | Personal Disposable Income | (II) | GNP at market prices − Depreciation |
| (C) | NNP at market prices | (III) | Personal Income − Personal tax payments − Non-tax payments |
| (D) | GVA at basic prices | (IV) | NNP at market prices + Other current transfers from the rest of the world |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A) - (IV), (B) - (III), (C) - (II), (D) - (I)
Each aggregate is reached from another by one adjustment.
| List-I | List-II | Reason |
|---|---|---|
| (A) National Disposable Income | (IV) NNP at market prices + Other current transfers from the rest of the world | NDI adds other current transfers from abroad to NNP at market prices. |
| (B) Personal Disposable Income | (III) Personal Income − Personal tax payments − Non-tax payments | PDI = PI − personal tax payments − non-tax payments. |
| (C) NNP at market prices | (II) GNP at market prices − Depreciation | Net = gross − depreciation. |
| (D) GVA at basic prices | (I) GVA at factor cost + Net production taxes | GVA at factor cost + net production taxes = GVA at basic prices. |
NCERT (2026-27): “National Disposable Income and Private Income Apart from these categories of aggregate macroeconomic variables, in India, a few other aggregate income categories are also used in National Income accounting “2.3 Some Macroeconomic Identities … Thus Personal Disposable Income (PDI ) ≡ PI – Personal tax payments – Non-tax payments. …” “Gross National Product (GNP) … If we deduct depreciation from GNP the measure of aggregate income that we obtain is called Net National Product (NNP). Thus NNP ≡ GNP – Depreciation” “2.2.4 Factor Cost, Basic Prices and Market Prices … As stated above, now the CSO releases GVA at basic prices. Thus, it includes the net production taxes but not net product taxes. In order to arrive at the GDP (at market prices) we need to add net product taxes to GVA at basic prices. Thus, |