What is the formula to calculate National Income?

National Income = Value of Goods + Value of Services + Net Factor Income from Abroad

Explain the significance of Net Domestic Product (NDP) in economic analysis.

NDP reflects the total value of goods and services produced, accounting for depreciation, thus providing a clearer picture of economic health.

True or False: Personal Income is equal to National Income.

False. Personal Income is derived from National Income but includes transfer payments and excludes undistributed corporate profits.

What does the term 'Disposable Income' refer to?

Disposable Income refers to the income available for individuals to spend or save after direct taxes have been deducted.

Fill in the blank: Net Factor Income from Abroad (NFIA) is calculated as the difference between ___ received from abroad and ___ paid to non-residents.

Factor income received; factor payments

Describe the Expenditure Method for calculating GDP.

The Expenditure Method sums total spending on final goods and services in an economy, represented as GDP = C + I + G + (X - M).

True or False: GNP at factor cost includes indirect taxes.

False. GNP at factor cost is calculated by deducting indirect taxes and adding subsidies from GNP at market prices.

What does the term 'Gross Domestic Product' (GDP) encompass?

GDP encompasses the total value of all final goods and services produced within a country's borders in a specific period.

Describe how depreciation affects the calculation of Net National Product (NNP).

Depreciation is deducted from Gross National Product (GNP) to calculate NNP, reflecting the loss of value of capital goods used in production.