A) NNP at factor cost
B) GDP at factor cost
C) NNP at market prices
D) GDP at current prices
Correct Answer: A
Solution :
[a] National Income is calculated by subtracting net indirect taxes from NNP at market prices. The obtained value is known as NNP at factor cost or national income. 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. It may be noted that: NNP at Factor Cost = NNP at Market Price \[-\] Indirect Taxes + Subsidies.
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