Daily Current Affairs for CA Foundation — 28 May 2026

Exam-ready economy and business knowledge for CA Foundation Paper 4. Today we revise national income aggregates — a core macroeconomics topic that also underpins economy-in-the-news headlines. Each item ends with a practice MCQ.

---

1. GDP, GNP and NNP

• Gross Domestic Product (GDP): market value of all final goods and services produced within the domestic territory of a country in a year.
• Gross National Product (GNP): GDP plus net factor income from abroad (NFIA).
• Net National Product (NNP): GNP minus depreciation (consumption of fixed capital).
• National Income is NNP at factor cost.

MCQ: Q1. GNP differs from GDP by the amount of:

• (a) Depreciation
• (b) Net factor income from abroad
• (c) Indirect taxes
• (d) Subsidies

Answer: (b) Net factor income from abroad

---

2. Real vs Nominal GDP

Nominal GDP is measured at current market prices, so it rises when prices rise. Real GDP is measured at constant (base-year) prices, stripping out inflation, and is the truer measure of growth in output.

MCQ: Q2. Real GDP is measured at:

• (a) Current prices
• (b) Constant (base-year) prices
• (c) Factor cost only
• (d) Future expected prices

Answer: (b) Constant (base-year) prices

---

One-Liner Revision Section

1. GDP: final goods/services produced within the domestic territory.
2. GNP = GDP + NFIA; NNP = GNP − depreciation.
3. National Income = NNP at factor cost.
4. Real GDP uses constant prices; Nominal GDP uses current prices.

---

Part of CA Saarthi's daily current affairs for CA Foundation. Practice 3,000+ chapter-wise MCQs free at casaarthi.in.