When net factor income from abroad is negative then:
When net factor income from abroad is negative then:
(a) GNP at MP < GDP at MP
(b) Domestic Income is more than National Income
(c) GNP at FC < GDP at FC
(d) All of these
Ans – (d)
Explanation:-
When Domestic Income is more than the National Income, the net factor income from abroad is negative.
National Income = Domestic Income + Net factor income from abroad
For example
Domestic Income = ₹ 200 Crores
Net factor income from abroad = ₹ – 50 Crores
National Income = ₹ 200 – ₹ 50
National Income = ₹ 150 Crores
Domestic Income > National Income when NFIA is negative.
Note: GDP at MP, GDP at FC, and domestic Income are all different aggregates of domestic income, GNP at MP, GNP at FC and national income are different aggregates of National Income.