UPSC Prelims 2013— Question 99

Concept and answer: Option D is correct. National income is a measure of the income generated by a country's factors of production over a period. In the national-accounts framework, it is derived from the value of final output after appropriate adjustments for depreciation, net factor income from abroad and indirect taxes/subsidies. Among the simplified options, the money value of final goods and services produced is the closest intended formulation. The question tests the precise definition, fact or causal relationship identified above. The alternatives must therefore be checked against that exact point rather than against a loosely related fact. Option A: Incorrect. This alternative does not match the verified principle tested by the question. It either reverses the relationship, assigns the feature to the wrong institution, place, process or category, or includes an additional proposition that is not correct. The fact that an option may contain a term related to the subject does not make the entire option correct. Option B: Incorrect. This alternative does not match the verified principle tested by the question. It either reverses the relationship, assigns the feature to the wrong institution, place, process or category, or includes an additional proposition that is not correct. The fact that an option may contain a term related to the subject does not make the entire option correct. Option C: Incorrect. This alternative does not match the verified principle tested by the question. It either reverses the relationship, assigns the feature to the wrong institution, place, process or category, or includes an additional proposition that is not correct. The fact that an option may contain a term related to the subject does not make the entire option correct. Option D: Correct. This option is the combination or proposition that matches the verified principle described above. It does not introduce a contradiction or an unsupported qualification. Exam takeaway: the decisive point is the distinction stated in the core explanation, and Option D is the only choice fully consistent with it. For Prelims, avoid selecting an option merely because one part sounds familiar. Read the entire alternative, identify the controlling constitutional provision, historical fact, scientific mechanism, geographical location or economic definition, and then eliminate choices that overstate, omit or misclassify that point.