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Among these aggregates, which is the largest figure?
ADisposable income
BPersonal income
CNet National Product
DGross National Product
Answer & Solution
Correct answer: D. Gross National Product
1. The aggregates form a descending chain as successive deductions are made.
2. Gross National Product stands at the top, before any deduction for depreciation.
3. Deducting depreciation gives Net National Product, so NNP is necessarily smaller than GNP.
4. Personal income is then derived from national income after further adjustments, and disposable income is smaller still because direct tax has been paid out of it.
5. Gross National Product is therefore the largest of the four.
_Source: TN HSC Class 12 Economics (Samacheer Kalvi, Govt of Tamil Nadu), Ch 2 "National Income", Part-A exercises and §2.4_
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