If GDP₍FC₎ = ₹7,500 crore, NFIA = ₹180 crore, and depreciation = ₹620 crore, what will be NNP₍FC₎?
Answer and explanation
Correct answer: ₹7,060 crore
Use the conversion formula NNP₍FC₎ = GDP₍FC₎ + NFIA − depreciation. Substitution gives 7,500 + 180 − 620 = ₹7,060 crore. NFIA is added because the aggregate changes from domestic to national, while depreciation is deducted because it changes from gross to net. Thus, option C is correct; option B ignores NFIA.
Frequently asked questions
What is the correct answer to this question?
₹7,060 crore
Why is this the correct answer?
Use the conversion formula NNP₍FC₎ = GDP₍FC₎ + NFIA − depreciation. Substitution gives 7,500 + 180 − 620 = ₹7,060 crore. NFIA is added because the aggregate changes from domestic to national, while depreciation is deducted because it changes from gross to net. Thus, option C is correct; option B ignores NFIA.
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.
