By which name is Net National Product at Factor Cost (NNPFC) commonly known?
Answer and explanation
Correct answer: National income
Net National Product at factor cost is commonly defined as national income. It represents the net factor income earned by the normal residents of a country during an accounting period. NNP is obtained after deducting depreciation from GNP, and the factor-cost measure excludes the effect of net indirect taxes. Personal income and disposable income are derived from national income after further adjustments such as undistributed profits, corporate taxes, and transfers.
Frequently asked questions
What is the correct answer to this question?
National income
Why is this the correct answer?
Net National Product at factor cost is commonly defined as national income. It represents the net factor income earned by the normal residents of a country during an accounting period. NNP is obtained after deducting depreciation from GNP, and the factor-cost measure excludes the effect of net indirect taxes. Personal income and disposable income are derived from national income after further adjustments such as undistributed profits, corporate taxes, and transfers.
Which subject and chapter does this question cover?
This is a Class 12 Economics question. Chapter: National Income and Related Aggregates. Topic: Aggregates related to national income - NNP.
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