National Income is the

National Income is defined as Net National Product at factor cost (NNPfc): it equals the total factor incomes (wages, profits, rent, interest, etc.) earned by a country’s residents during a year, i.e., NNP at factor cost is called National Income [1]. In accounting terms, NNP at factor cost is obtained by adjusting NNP at market prices for net indirect taxes (indirect taxes minus subsidies); thus NNPfc (National Income) = NNP at market prices – (Indirect taxes – Subsidies) (equivalently, NNPMP minus net indirect taxes) [2]. Therefore the correct choice is “Net National Product at factor cost.”

Sources

1. [1] Macroeconomics (NCERT class XII 2025 ed.) > Chapter 2: National Income Accounting > National Disposable Income and Private Income > p. 28
2. [2] Macroeconomics (NCERT class XII 2025 ed.) > Chapter 2: National Income Accounting > NNP ≡ GNP – Depreciation > p. 25