Statement 1: National Income at current price is also known as Real National Income
Statement 1: National Income at current price is also known as Real National Income.
Statement 2: National Income at current price is affected by change in both price and quantity.
Alternatives:
(a) Both the Statements are true
(b) Both the Statements are false
(c) Statement 1 is true and Statement 2 is false
(d) Statement 2 is true and Statement 1 is false
Anurag Pathak Changed status to publish December 10, 2023
Ans – (d)
Explanation:-
Statement 1 is false, national income at current price is not known as real national income.
Statement 2 is true, national income at current price is affected by change in both the price and quantity as it is measured at the current price.
For example:-
National Income = quantity produced × Current price.
2021 – 22
Quantity produced = 200
Current price = ₹ 10
National Income = 200 × 10 = ₹ 2,000
2022 – 23
Quantity produced = 200
Current price = ₹ 15
National Income = 200 × 15 = ₹ 3,000
2023 – 24
Quantity produced = 150
Current price = ₹ 10
National Income = 150 × 10 = ₹ 1,500
Anurag Pathak Changed status to publish December 10, 2023
