Which of the following is correct regarding the National Income? I. Intermediate goods are not included in the calculation of national income. II. Final goods are included in the calculation of national income.

Explanation

The correct answer is Both I and II. Key Points The total value of goods and services produced by a country in a financial year is known as the National Income of that country. Intermediate goods are not included in the National Income while measuring National Income to avoid double accounting. Final goods are included in the calculation of national income. Additional Information Key facts about National income in India- The first attempt to calculate the national income of India was made by Dadabhai Naoroji. The first scientific method for calculating national income was made by Prof. V.K.R.V. Rao in 1931 but was not satisfactory. The first official attempt was made by National Income Committee headed by Prof. P.C. Mahalanobis in 1949. Central Statistical Organization (CSO) is responsible for calculating National income in India.