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Consider the following statements:
1. GNP = GDP + Net factor income from abroad
2. Net National Product at factor cost is “National Income”
3. National Disposable Income=Net National product at market prices + other current transfers from the rest of the world.
Which of the statements given above is/are correct?  
  • a)
    1 and 2 only  
  • b)
    2 and 3only  
  • c)
    1, 2 and 3 
  • d)
    1 and 3 only
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements:1. GNP = GDP + Net factor income fro...
Gross national product (GNP) is an estimate of total value of all the final products and services turned out in a given period by the means of production owned by a country's residents. 
Net National Product at factor cost is also called as national income. Net National Product at factor cost is equal to sum total of value added at factor cost or net domestic product at factor cost and net factor income from abroad.
Community Answer
Consider the following statements:1. GNP = GDP + Net factor income fro...
Equal to Gross National Product minus depreciation.

Both statements are true.

Statement 1 is the formula for calculating GNP, which stands for Gross National Product. It takes into account the net factor income from abroad, which is the difference between income earned by domestic factors of production in foreign countries and income earned by foreign factors of production in the domestic economy.

Statement 2 is also true. Net National Product (NNP) at factor cost is the measure of a country's economic output that takes into account the depreciation of its capital goods. This is calculated by subtracting depreciation from Gross National Product.
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Consider the following statements:1. GNP = GDP + Net factor income from abroad2. Net National Product at factor cost is “National Income”3. National Disposable Income=Net National product at market prices + other current transfers from the rest of the world.Which of the statements given above is/are correct?a)1 and 2 onlyb)2 and 3onlyc)1, 2 and 3d)1 and 3 onlyCorrect answer is option 'C'. Can you explain this answer?
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