If GDP at market price is 1200 and net factor income from abroad is -80, what is GNP at market price?
Answer and explanation
Correct answer: 1120
GNP at market price is obtained by adding net factor income from abroad to GDP at market price: GNPMP = GDPMP + NFIA. Substituting the given values gives 1200 + (-80) = 1120. The negative NFIA means that factor income paid to foreign countries is greater than factor income received from abroad. Therefore, option C is correct.
Frequently asked questions
What is the correct answer to this question?
1120
Why is this the correct answer?
GNP at market price is obtained by adding net factor income from abroad to GDP at market price: GNPMP = GDPMP + NFIA. Substituting the given values gives 1200 + (-80) = 1120. The negative NFIA means that factor income paid to foreign countries is greater than factor income received from abroad. 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.
