| Read the statements carefully: |
| 1. GNP = GDP + Net factor income from abroad. |
| 2. NNP = GNP \[-\] Depreciation |
| 3. NNP at Factor Cost = NNP at Market Price \[-\] Indirect Taxes + Subsidies. |
| Which of these statements is/are correct? |
A) Only 1 and 2
B) Only 2 and 3
C) Only 1 and 3
D) All 1, 2 and 3
Correct Answer: D
Solution :
[d] Gross National Product is the total market value of all final goods and services produced in a year. GNP includes net factor income from abroad whereas GDP does not. Therefore, GNP = GDP + Net factor income from abroad. NNP is the market value of all final goods and services after providing for depreciation. That is, when charges for depreciation are deducted from the GNP we get NNP at market price. Therefore, NNP = GNP\[-\]Depreciation. NNP at factor cost or National Income is the sum of wages, rent, interest and profits paid to factors for their contribution to the production of goods and services in a year.
You need to login to perform this action.
You will be redirected in
3 sec
