If a country's GDP at market price is 2,800 and its GNP at market price is 3,000, what is its net factor income from abroad?
Answer and explanation
Correct answer: 200
The relationship between these aggregates is GNP at market price = GDP at market price + net factor income from abroad. Therefore, NFIA = GNPMP − GDPMP = 3,000 − 2,800 = 200. A positive value means residents earned 200 more factor income from abroad than foreigners earned from domestic production.
Frequently asked questions
What is the correct answer to this question?
200
Why is this the correct answer?
The relationship between these aggregates is GNP at market price = GDP at market price + net factor income from abroad. Therefore, NFIA = GNPMP − GDPMP = 3,000 − 2,800 = 200. A positive value means residents earned 200 more factor income from abroad than foreigners earned from domestic production.
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 - GNP.
