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Answer:- False, The domestic product includes the contribution of all the producers (whether resident or non-resident) who are within the domestic territory of the country.
True, It is possible when the factor income paid abroad is more than the factor income received from abroad. For example Let’s assume Domestic Income = ₹600 Crores Factor income from abroad = ₹ 100 Crores Factor income to abroad…
True, In a closed economy, the gross domestic product is always equal to the gross national product. It happens because net factor income from abroad is zero due to no interaction with the rest of the world. For Example:- Gross…
Answer:- Indirect Taxes (Indirect Taxes/Subsidies) are deducted and Subsidies (Indirect Taxes/Subsidies) are added to NNP at MP to determine NNP at FC. Explanation:- NNP at FC = NNP at MP – Indirect taxes + subsidies
Answer:- The value of gross national product will be greater than Gross Domestic Product, when value of Net Factor Income from Abroad is positive. Explanation:- Gross National Product = Gross Domestic Product + Net Factor Income from Abroad
Answer:- National Income = NDP at FC + Net Factor income from abroad.
Answer:- Depreciation is added in NNP at MP to arrive at GNP at MP. Explanation:- GNP at MP = NNP at MP + Depreciation
Answer:- NNP at FC = GNP at MP – Net Indirect tax – Depreciation.
Answer:- NDP at FC is also known as Domestic Income. Explanation:- Net Domestic Product at Factor Cost (NDP at FC) is known as Domestic Income in short.
Answer:- GDP at MP, GDP at FC, NDP at MP and NDP at FC are four Domestic concepts. Explanation:- Domestic Income is calculated in four aggregates. GDP at MP = Gross Domestic Product at Market Price GDP at FC =…