JKSSB Paid Notes Class 3 – Economics | JKSSB Mock Test

JKSSB Paid Notes Class 1 – Economics | JKSSB Mock Test

📊 Basic National Income Concepts

  1. National Income (NI)Total value of final goods & services produced by residents in 1 year
  2. Calculated as NNP at Factor Cost
  3. Intermediate goods are not counted to avoid double counting
📌 SSC CGL: "National Income is measured as?" — NNP at Factor Cost

🏦 Different Aggregates (GDP, GNP, NNP)

  1. GDP (Gross Domestic Product)Production within India’s borders (Indians + foreigners)
  2. GNP (Gross National Product)GDP + Net Factor Income from Abroad (Only Indians)
  3. NNP (Net National Product)GNP – Depreciation
  4. National IncomeNNP at Factor Cost
💡 SSC CGL: "GDP vs GNP?" — GDP is domestic production, GNP adds income from abroad

📐 Formulas (For Direct MCQs)

  1. GDP (MP) = C + I + G + (X – M)
  2. GNP (MP) = GDP + NFIA
  3. NNP (MP) = GNP – Depreciation
  4. NNP (FC) = NNP (MP) – (Indirect Tax – Subsidies)
  5. Per Capita Income = National Income ÷ Population
🧠 SSC CHSL: "Per Capita Income formula?" — NI ÷ Population

🚫 What is Not Included in NI?

  1. Illegal activities (Smuggling, Drugs) ❌
  2. Second-hand goods sales ❌
  3. Share market transactions ❌
  4. Unpaid services (Housewives) ❌
📌 SSC MTS: "Are second-hand goods included in NI?" — No

🛠️ Methods of Calculating National Income

  1. Production Method – Adds final goods/services produced
  2. Income Method – Adds wages, rent, profit, interest
  3. Expenditure Method – Adds C + I + G + (X – M)
💡 SSC CGL: "Which method is used for NI?" — All 3 are correct

📅 Important Data & Facts

  1. First NI EstimateDadabhai Naoroji ("Drain of Wealth")
  2. Current NI CalculationNSO (National Statistical Office)
  3. Base Year for GDP2011–12
  4. India’s GDP (2024) – Approx $3.7 Trillion
  5. Per Capita Income (2024) – Approx ₹1,98,000
🧠 JKSSB: "Who provides current NI data?" — NSO

🆚 Real GDP vs Nominal GDP

  1. Real GDPRemoves inflation, shows actual growth
  2. Nominal GDP – At current prices (includes inflation)
💡 SSC CGL: "Which GDP removes inflation?" — Real GDP

📖 One-Liner Summary for MCQs

  1. GDP – Production inside India
  2. GNP – GDP + Income from abroad
  3. NNP – GNP – Depreciation
  4. NI – NNP at Factor Cost
  5. Per Capita Income – NI ÷ Population
📌 SSC GD: "GDP stands for?" — Gross Domestic Product