If GDP is ₹3,000 crore and NFIA is ₹150 crore, what is GNP?
Answer and explanation
Correct answer: ₹3,150 crore
Gross National Product is calculated by adding net factor income from abroad to Gross Domestic Product. Thus, GNP = GDP + NFIA = ₹3,000 crore + ₹150 crore = ₹3,150 crore. Since NFIA is positive, it increases GNP above GDP. ₹2,850 crore would be correct only if NFIA were negative ₹150 crore.
Frequently asked questions
What is the correct answer to this question?
₹3,150 crore
Why is this the correct answer?
Gross National Product is calculated by adding net factor income from abroad to Gross Domestic Product. Thus, GNP = GDP + NFIA = ₹3,000 crore + ₹150 crore = ₹3,150 crore. Since NFIA is positive, it increases GNP above GDP. ₹2,850 crore would be correct only if NFIA were negative ₹150 crore.
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.
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