National income at factor cost means national income at?

This Economics question is asking about what national income at factor cost means. National income at factor cost refers to the total income earned by all factors of production within a country. Factors of production include labor, capital, and land.

The question is asking what national income at factor cost means in terms of prices. The options provided are current prices, nominal prices, last year prices, and base year prices.

Out of the options given, the correct answer is option A: current prices. This means that national income at factor cost is calculated using the current prices of goods and services produced within a country.

Nominal prices refer to the prices of goods and services without taking inflation into account. Last year prices and base year prices both refer to prices from previous years.

Understanding national income is important in Economics as it provides an indication of the economic growth and development of a country. It can also be used to compare the economic performance of different countries.

To learn more about national income and related concepts, please see the relevant sections of the recommended textbooks.