Question : GNP at MP less ___________ gives us GDP at MP.
Option 1: depreciation
Option 2: indirect taxes
Option 3: Net Factor Income from Abroad
Option 4: subsidies
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Correct Answer: Net Factor Income from Abroad
Solution : The correct answer is Net Factor Income from Abroad.
The equation is GDPMP = GNPMP − Net Factor Income from Abroad (NFIA).
In the context of national income accounting, subtracting Net Factor Income from Abroad from Gross National Product at Market Prices gives us Gross Domestic Product at Market Prices. Net Factor Income from Abroad represents the difference between the income earned by a country's residents from their investments and work abroad and the income earned by foreign residents within the country. This adjustment is made to focus on domestic production within the country's borders.
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Question : NDP at FC plus net factor income from abroad is equal to
Option 1: NNP at MP
Option 2: NNP at FC
Option 3: GDP at FC
Option 4: GNP at MP
Question : Net domestic product is calculated as_______.
Option 1: Gross Domestic Product (GDP) - Depreciation
Option 2: Gross National Product (GNP) - Depreciation
Option 3: Gross Domestic Product (GDP) - Net income earned from abroad
Option 4: Gross National Product (GNP) - Net income earned from abroad
Question : Which of these expressions is correct?
Option 1: If the factor income from abroad is greater than the factor income paid abroad, then the Gross National Product (GNP) would be greater than the Gross Domestic Product (GDP).
Option 2: If the factor income from abroad is greater than the factor income paid abroad, then the GNP would be lower than the GDP.
Option 3: If the factor income earned from abroad is less than the factor income paid abroad, then the GNP would be greater than the GDP.
Option 4: If the net factor income from abroad is negative, then the GNP would be greater than the GDP.
Question : In the estimation of national income, which of the following items will be subtracted from Net national product (NNP) at market price?
Option 1: Depreciation
Option 2: Net product taxes and net production taxes
Option 3: Net indirect taxes
Option 4: Depreciation and net product taxes
Question : What is the basic difference in the aggregates at market price and factor cost?
Option 2: Indirect taxes
Option 4: Direct taxes
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