Which statements are true in terms of basic national income aggregates:

(A) GNP at factor cost measures the value of output received by the factors of production belonging to a country in a year.

(B) GDP is the market value of all intermediate goods and final goods and services produced within a domestic territory of a country measured in a year.

(C) NDP at factor cost is the income earned by the factors in the form of wages, profits, rent, interest, etc., within the domestic territory of a country.

(D) GDP at factor cost is gross domestic product at market prices, less net product taxes.

Choose the correct answer from the options given below:

(A), (C) and (D) only

The correct answer is Option (4) → (A), (C) and (D) only

(A) GNP at factor cost measures the value of output received by the factors of production belonging to a country in a year. True. Gross National Product at Factor Cost (GNPFC) includes the value of goods and services produced by normal residents of a country (both within and outside its territory) during a year, measured at factor cost (income received by factors of production — wages, rent, interest, profit).

(B) GDP is the market value of all intermediate goods and final goods and services produced within a domestic territory of a country measured in a year. False. GDP includes only final goods and services, not intermediate goods, to avoid double counting.

(C) NDP at factor cost is the income earned by the factors in the form of wages, profits, rent, interest, etc., within the domestic territory of a country. True. Net Domestic Product at Factor Cost (NDPFC) represents the domestic income earned by all factors of production within the domestic territory, after deducting depreciation.

(D) GDP at factor cost is gross domestic product at market prices, less net product taxes. True.