CA Foundation Exam > CA Foundation Questions > GNP at factor cost minus depreciation is equa...
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GNP at factor cost minus depreciation is equal to ______.
- a)NNP at factor cost
- b)NDP at factor cost
- c)GDP at factor cost
- d)NNP at market price.
Correct answer is option 'A'. Can you explain this answer?
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GNP at factor cost minus depreciation is equal to ______.a)NNP at fact...
GNP at Factor Cost Minus Depreciation Equals NNP at Factor Cost
Explanation:
GNP at factor cost refers to the total income earned by all the factors of production, including labor, land, capital, and entrepreneurship within a country's borders. Depreciation is the decrease in the value of an asset over time due to wear and tear or obsolescence. Therefore, GNP at factor cost minus depreciation would give us the net income earned by the factors of production.
On the other hand, NNP at factor cost refers to the net income earned by the factors of production after deducting depreciation. In other words, it is the amount of income available for consumption or investment without reducing the country's productive capacity.
Therefore, GNP at factor cost minus depreciation is equal to NNP at factor cost.
Conclusion:
The correct option is A, which states that GNP at factor cost minus depreciation is equal to NNP at factor cost. This formula helps in calculating the net income earned by the factors of production, which is a crucial factor in measuring a country's economic growth and development.
Explanation:
GNP at factor cost refers to the total income earned by all the factors of production, including labor, land, capital, and entrepreneurship within a country's borders. Depreciation is the decrease in the value of an asset over time due to wear and tear or obsolescence. Therefore, GNP at factor cost minus depreciation would give us the net income earned by the factors of production.
On the other hand, NNP at factor cost refers to the net income earned by the factors of production after deducting depreciation. In other words, it is the amount of income available for consumption or investment without reducing the country's productive capacity.
Therefore, GNP at factor cost minus depreciation is equal to NNP at factor cost.
Conclusion:
The correct option is A, which states that GNP at factor cost minus depreciation is equal to NNP at factor cost. This formula helps in calculating the net income earned by the factors of production, which is a crucial factor in measuring a country's economic growth and development.
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GNP at factor cost minus depreciation is equal to ______.a)NNP at fact...
Well GNP at FC nd NNP at FC hve similarity in national(N) product (P) nd FC nw as per the question its asking GNP at FC minus depreciation will be equal to... So for this we hve to only focus on gross and net nd we know that gross is inclusive of depreciation whereas net excludes it.. So the answer will be NNP at FC..
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GNP at factor cost minus depreciation is equal to ______.a)NNP at factor costb)NDP at factor costc)GDP at factor costd)NNP at market price.Correct answer is option 'A'. Can you explain this answer?
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