Net national product at factor cost is also known as:a)Net domestic productb)Gross National productc)National Incomed)Personal IncomeCorrect answer is option 'C'. Can you explain this answer?

Question

Answer

Well this is the most easiest question bt then also we usually got confused in this as there are many aggregates of national income so we easily confused in this... its very easy that NNP at FC is known as national income why bcz it refers to the net money value of final goods and services produced by the normal residents of the country during a period of one year thts y it is regonized as national income...

Answer

Other name of NNPfc is National Income. you have o remember it. There is no definition to understand it.

Answer

Net national product at factor cost (NNPFC) is a measure of the total value of goods and services produced by a country's residents over a specific period after deducting depreciation and indirect taxes. It represents the net income earned by the factors of production within a country's borders.

Explanation:

1. Definition of Net National Product at Factor Cost (NNPFC):
- Net national product (NNP) refers to the total value of goods and services produced by a country's residents, including both domestic and foreign factors of production.
- NNP at factor cost deducts depreciation and indirect taxes from the total NNP value to obtain a measure of net income earned by the factors of production within the country.

2. Comparison with other Economic Indicators:
a) Net Domestic Product (NDP):
- NDP represents the total value of goods and services produced within a country's borders, excluding income earned by foreign factors of production.
- NNPFC is a more comprehensive measure than NDP as it includes income earned by both domestic and foreign factors of production.

b) Gross National Product (GNP):
- GNP represents the total value of goods and services produced by a country's residents, regardless of their location.
- NNPFC is different from GNP as it deducts depreciation and indirect taxes to arrive at the net income earned by the factors of production within the country.

c) National Income:
- National income refers to the total income earned by individuals and businesses within a country.
- NNPFC is equivalent to national income as it represents the net income earned by the factors of production within the country.

d) Personal Income:
- Personal income represents the total income received by individuals, including wages, salaries, dividends, and interest.
- NNPFC is not the same as personal income because it focuses on the income earned by the factors of production rather than individuals.

Conclusion:
Net national product at factor cost (NNPFC) is a measure of the net income earned by the factors of production within a country's borders. It is equivalent to national income and differs from other economic indicators such as net domestic product (NDP), gross national product (GNP), and personal income.

Answer

Answer is ' National Income'.

Answer

NNP at FC is also known as national income

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