Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

If the domestic income of an economy is 2500 crores, the factor income from abroad is 300 crores, the consumption of fixed capital is 150 crores and Net national product at factor cost is 2400 crores, then the Factor income paid to abroad will be:

Options:

100 crores

(-) 100 crores

400 crores

250 crores

Correct Answer:

400 crores

Explanation:

The correct answer is Option (3) → 400 crores

NNP(FC)= NDP(FC) + NFIA

NDP(FC) = Domestic income

NFIA = Factor Income from AbroadFactor Income Paid Abroad

Thus, NNP (FC) = NDP(FC) + Factor Income from AbroadFactor Income Paid Abroad

Factor Income Paid Abroad = NDP (FC) + Factor Income from Abroad - NNP (FC)

                                             = 2,500 + 300 - 2,400

                                             = 400 crore