GENERAL KNOWLEDGE

GK

INDIAN ECONOMY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
In an open economy, the National Income of the economy is:
A
Natioanl Income = Consumption + Investment +Govt. Expenditure+ Total Exports
B
Natioanl Income=Investment +Govt. Expenditure +Total Exports + Total Imports
C
National Income =Consumption + Investment -Govt. Expenditure+ (Total Exports - Total Imports)
D
National Income =Consumption + Investment -Govt. Expenditure+Total Exports - Total Imports
Explanation: 

Detailed explanation-1: -In an open economy, the components of consumption, investing, trade balance, and government expenditures contribute to the national income.

Detailed explanation-2: -This says that total output equals total consumption expenditures plus total investment expenditures plus government expenditures, plus the current account. The national income identity can be rewritten: CA = Y − (C + I + G).

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