Q133
Indian EconomyNational Income, Sectors & Growth
Which of the following is not required while considering GNP (Gross National Product)?
- a.Purchase of goods by Government
- b.Private investment
- c.Per capita income of citizens
- d.Net foreign investment
Answer: (C) Per capita income of citizens
By the expenditure method, GNP = private consumption + private investment + government purchases of goods and services + net exports + net factor income from abroad, so options (A), (B) and (D) are components. Per capita income is not a component: it is obtained afterwards by dividing national income by population. Remember: GNP = GDP + net factor income from abroad, and NNP = GNP - depreciation.