Answer is (a) Main concepts of national income Gross

National Product: Gross National Product is an important concept of national income. It is calculated on the basis of the final goods and services produced in a country. The products that are available for consumption are called the final product. For example, we manufacture shirts using raw materials such as cloth, thread, and buttons. Here, the shirt is the final product for consumption. The money value of final products is taken into account for calculating the Gross National Product. While calculating the money value of the shirt, the value of raw materials such as buttons and clothes are included.

Gross Domestic Product – GDP Gross Domestic Product is the most suitable concept of national income to analyze the contribution of sectors in an economy. The GDP of a country is the total money value of the final goods and services produced within the domestic territory during a financial year. The income of people working abroad and the profit of institutions and firms operating abroad will not be included while calculating the Gross Domestic Product. For example, suppose an Indian firm operates in America. The profit of that institution will be included in the Gross Domestic Product of America but in the Gross National Product of India. That is to say while calculating the GDP of India, such income will be excluded.

Net National Product – NNP If you purchase a computer and sell it the next year, will you get the same amount that you spent while purchasing it? Why? Similarly, with time, machinery and other things suffer from wear and tear. The cost incurred to remedy this wear and tear is termed as depreciation charges. The depreciation charges are taken into consideration while calculating the national income. When we deduct depreciation charges from the Gross National Product we get the Net National Product. Technically, the Net National Product is considered as national income.

Net National Product = Gross National Product – Depreciation charges

Per Capita Income:

When we divide the national income by population, we get per capita income. It helps to know the economic position of a country and to compare it with other countries.

(b) The Central Statistical Office (CSO) is the official agency that estimates the national income of India. The estimation is done mainly for the purpose of planning and development activities of the government. It also helps to understand the nature of the employment sectors and the types of employment the people are engaged in. In India, we make use of the product, income, and expenditure methods to estimate the national income.

(c) Knowledge economy and India: The knowledge sector is the sector which efficiency uses knowledge and technology to attain economic growth. Today, modern technology and information & communication possibilities have grown and developed into knowledge economy. Education, innovation, and Information & Communication Technology (ICT) form the basis of knowledge economy. In knowledge economy, production and consumption of intellectual capital take place.