If GDP at market price is ₹1,700 crore and GNP at market price is ₹1,640 crore, what is NFIA?
Answer and explanation
Correct answer: −₹60 crore
NFIA means Net Factor Income from Abroad and measures the difference between factor income received from abroad and factor income paid to foreign factors within the domestic economy. The relationship is GNP at market price = GDP at market price + NFIA. Therefore, NFIA = GNPMP − GDPMP = ₹1,640 crore − ₹1,700 crore = −₹60 crore. The negative value means that payments made to foreign factors exceed factor income received from abroad by ₹60 crore.
Frequently asked questions
What is the correct answer to this question?
−₹60 crore
Why is this the correct answer?
NFIA means Net Factor Income from Abroad and measures the difference between factor income received from abroad and factor income paid to foreign factors within the domestic economy. The relationship is GNP at market price = GDP at market price + NFIA. Therefore, NFIA = GNPMP − GDPMP = ₹1,640 crore − ₹1,700 crore = −₹60 crore. The negative value means that payments made to foreign factors exceed factor income received from abroad by ₹60 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.
