If NDP₍FC₎ = ₹6,800 crore and net factor income from abroad is −₹240 crore, what will be NNP₍FC₎?
Answer and explanation
Correct answer: ₹6,560 crore
The conversion formula is NNP₍FC₎ = NDP₍FC₎ + NFIA. Here NFIA is negative, so NNP₍FC₎ = 6,800 + (−240) = ₹6,560 crore. A negative NFIA means factor income paid to the rest of the world exceeds factor income received from abroad, reducing the national aggregate relative to the domestic aggregate. Therefore, option B is correct.
Frequently asked questions
What is the correct answer to this question?
₹6,560 crore
Why is this the correct answer?
The conversion formula is NNP₍FC₎ = NDP₍FC₎ + NFIA. Here NFIA is negative, so NNP₍FC₎ = 6,800 + (−240) = ₹6,560 crore. A negative NFIA means factor income paid to the rest of the world exceeds factor income received from abroad, reducing the national aggregate relative to the domestic aggregate. Therefore, option B 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 - NNP.
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