Macro

National Income

Easy

When the income is being spent on the goods and services produced by the firms, it takes the form of ________ received by the firms.

Aggregate Income.

Aggregate Expenditure.

Factor Payments.

Factor Services.

✅ Correct Option: 2

In the circular flow of income, households spend their income on the goods and services produced by firms. This spending constitutes aggregate expenditure, which is received by the firms as sales revenue and flows back to households as factor payments. Hence option 2.

2026: 31 May Shift 1

Which price index is used in USA as a measure of bulk buying of goods and services?

2025: 2 June Shift 1

Identify which of the following is not considered as 'Normal Resident' of India?

2025: 26 May Shift 2

Which of the following statements is true?

(A) Gross domestic income is a subset of national income.

(B) Corporate profit tax is a factor in income earned by the government.

(C) The production of wheat by a farmer retained by himself for his self-consumption will be included in the national income of the country.

(D) All capital goods are producer goods, but all producer goods are not necessarily capital goods.

Choose the correct answer from the options given below:

2026: 21 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Final durable goods which are used in the production process for creation of goods	(I) Depreciation
(B) Wear and tear of capital	(II) Product method
(C) Measuring aggregate value of final goods and services produced by all the firms is part of	(III) Net value added
(D) Deduction of the value of depreciation from gross value added	(IV) Capital goods

Choose the correct answer from the options given below:

2025: 14 May Shift 1

What are the main sources of demand in a closed economy?

Consumption, government spending, and domestic investment
Consumption, net exports and government spending
Consumption, government spending, domestic investment and net exports
Government spending, net exports and domestic investment

2026: 21 May Shift 1

Match List-I with List-II

List-I	List-II
(A) GDP	(I) NDP $_{MP}$ + NFIA
(B) GDP $_{FC}$	(II) C+I+G+X-M
(C) NDP $_{MP}$	(III) GDP $_{MP}$ - Depreciation
(D) NNP $_{MP}$	(IV) GDP $_{MP}$ - NIT

Choose the correct answer from the options given below:

When the income is being spent on the goods and services produced by the firms, it takes the form of ________ received by the firms.

Solution

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