The term National Income represents

1. National Income is generally understood as Net National Product at Factor Cost (NNPfc). 2. Gross National Product at market prices (GNPmp) includes the value of all final goods and services produced by the normal residents of a country in a year, valued at market prices, including net factor income from abroad. 3. To get to NNPfc from GNPmp, we need to subtract depreciation (to get Net National Product) and subtract net indirect taxes (Indirect Taxes - Subsidies) (to convert market prices to factor cost). 4. GNPmp - Depreciation = Net National Product at Market Prices (NNPmp). 5. NNPmp - Net Indirect Taxes (i.e., - Indirect Taxes + Subsidies) = Net National Product at Factor Cost (NNPfc) = National Income. 6. Option (C) represents GNPmp - Depreciation - Indirect Taxes + Subsidies, which equals NNPfc.