Question : Which of the following is correct regarding Private Income?

Option 1: Private Income = Factor income from net domestic product accruing to the private sector + National debt interest – Net factor income from abroad + Current transfers from government + Other net transfers from the rest of the world

Option 2: Private Income = Factor income from net domestic product accruing to the private sector + National debt interest + Net factor income from abroad – Current transfers from government + Other net transfers from the rest of the world

Option 3: Private Income = Factor income from net domestic product accruing to the private sector + National debt interest + Net factor income from abroad + Current transfers from government + Other net transfers from the rest of the world

Option 4: Private Income = Factor income from net domestic product accruing to the private sector - National debt interest + Net factor income from abroad + Current transfers from government + Other net transfers from the rest of the world

Question : ________________ is the amount paid to factors of production for their contribution in the production process. 

Option 1: Factor cost

Option 2: Market price

Option 3: Net factor income from abroad

Option 4: Net factor income to abroad

Question : __________________ is the price for which product is actually sold in the market. 

Option 1: Factor cost

Option 2: Market price

Option 3: Net factor income paid to abroad

Option 4: Net factor income 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 : Which of the following identities is correct regarding Gross National Product (GNP)?

Option 1: GNP = GDP (Gross Domestic Product) + Factor income earned by the domestic factors of production employed in the rest of the world + Factor income earned by the factors of production of the rest of the world employed in the domestic economy.

Option 2: GNP = GDP – Factor income earned by the domestic factors of production employed in the rest of the world – Factor income earned by the factors of production of the rest of the world employed in the domestic economy.

Option 3: GNP = GDP + Factor income earned by the domestic factors of production employed in the rest of the world – Factor income earned by the factors of production of the rest of the world employed in the domestic economy.

Option 4: GNP = GDP – Factor income earned by the domestic factors of production employed in the rest of the world + Factor income earned by the factors of production of the rest of the world employed in the domestic economy.