National income at current prices is calculated based on:

Correct option is D

The correct Ans is (d) Prevailing prices
National income at current prices is calculated based on the prevailing market prices during the specific time period under consideration. It reflects the actual monetary value of goods and services produced within a country, without adjusting for inflation or deflation. Unlike national income at constant prices, which accounts for price changes over time to provide a real comparison, current price calculations are nominal and include the effects of inflation.
Information Booster:
· Constant Prices: Used to calculate real national income by adjusting for inflation, providing a better comparison across years.
· Current Prices: Reflect the nominal value of goods and services at the prices that prevail in the economy during the given period.
· National Income: Includes metrics such as GDP, GNP, and NNP, which can be calculated at both constant and current prices.
· Example: GDP at current prices includes inflationary effects, while GDP at constant prices adjusts for inflation to reflect real growth.