If GDP is ₹2000 crore and NFIA is ₹-100 crore, what is GNP?
Answer and explanation
Correct answer: ₹1900 crore
Gross National Product is calculated using GNP = GDP + NFIA. Substituting the given values gives GNP = ₹2000 crore + (−₹100 crore) = ₹1900 crore. Because NFIA is negative, residents’ factor income received from abroad is less than factor income paid abroad, so national output is lower than domestic output by ₹100 crore. Therefore, option C is correct.
Frequently asked questions
What is the correct answer to this question?
₹1900 crore
Why is this the correct answer?
Gross National Product is calculated using GNP = GDP + NFIA. Substituting the given values gives GNP = ₹2000 crore + (−₹100 crore) = ₹1900 crore. Because NFIA is negative, residents’ factor income received from abroad is less than factor income paid abroad, so national output is lower than domestic output by ₹100 crore. Therefore, option C is correct.
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.
Student feedback
Was this question useful?
👍 0 Helpful 👎 0 Not helpful
Yes 0% No 0%
0 responsesStudent Reviews
No published reviews yet.
