If factor income received from abroad is equal to factor income paid abroad, then which of the following is not a valid statement?
If factor income received from abroad is equal to factor income paid abroad, then which of the following is not a valid statement?
(a) National Income = Domestic Income
(b) NDP at FC + Depreciation = GNP at FC
(c) NDP at FC + Depreciation = GNP at MP
(d) All are valid
Anurag Pathak Changed status to publish December 7, 2023
Ans – (c)
Explanation:-
When factor income received from abroad is equal to factor income paid abroad. The NFIA is zero
Net Factor income from abroad = Factor income from abroad – Factor income to abroad
Net Factor income from abroad = ₹ 0
In this case
Option a valid
National Income = Domestic income + NFIA
National Income = Domestic Income
Option b is valid
GNP at FC = NDP at FC + Depreciation + NFIA
GNP at FC = NDP at FC + Depreciation
Option C is not valid
GNP at MP = NDP at FC + Depreciation + NFIA + Net Indirect taxes
GNP at MP = NDP at FC + Depreciation + Net Indirect taxes
Anurag Pathak Changed status to publish December 7, 2023
