NNP = GNP - Depreciation GNP = GDP + Net Factor Income from Abroad (NFIA) NFIA = Factor income from abroad - Factor income paid to abroad 'Net' in national income accounting signifies deduction of depreciation.
Which of the following statement/s is/are incorrect about Net National Product (NNP)? (a) It shows net production of goods and services produced in a given financial year adjusted for net factor income from abroad. (b) It includes exports, imports but not factor income from abroad. (c) It is called 'net' because it deducts capital depreciation from total National Income.
Asked in MPSC CS Prelims 2021 · Topic: National Income & Gross Domestic Product (Net Domestic Product (NDP) and Net National Product (NNP))
More Economic Development questions
- The Net National Product at Market Price (N.N.P. MP) is –
- Which of the following statement is correct ?
- Which one of the following relations is correct for net domestic product?
- GDP(at market price) – NIT = ?
- Depreciation is also called
- difference between the national income at factor cost and national income at market prices arises from 1) indirect taxes and subsidies 2) direct taxes and subsidies 3) indirect taxes and direct taxes 4) only indirect taxes
- Which of the following is equal to the National Income ?
- Read the following statements : (i) National income is the monetary value of all final goods and services produced. (ii) Depreciation is deducted from GNP to get NNP. Which of these statements is/are correct ?