Net Domestic product at factor cost is less than national income when:
Net Domestic product at factor cost is less than national income when:
(a) Net factor income from abroad is positive
(b) Net factor income from abroad is negative
(c) Net factor income from abroad is zero
(d) Net exports are positive
Anurag Pathak Changed status to publish December 7, 2023
Ans – (a)
Explanation:-
National Income = Net domestic product at Factor cost + Net Factor income from abroad
For example:-
National Income = ₹ 400 Crores
Net Factor income from abroad = ₹ 50 Crores
Net Domestic product at factor cost = National Income – Net Factor income from abroad
Net Domestic Product at factor cost = ₹ 400 – ₹ 50
Net Domestic Product at Factor cost = ₹ 350 Crores
Net Domestic Product at factor cost < National Income
Anurag Pathak Changed status to publish December 7, 2023
