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: |
100 crores (-) 100 crores 400 crores 250 crores |
400 crores |
The correct answer is Option (3) → 400 crores NNP(FC)= NDP(FC) + NFIA NDP(FC) = Domestic income NFIA = Factor Income from Abroad−Factor Income Paid Abroad Thus, NNP (FC) = NDP(FC) + Factor Income from Abroad−Factor Income Paid Abroad Factor Income Paid Abroad = NDP (FC) + Factor Income from Abroad - NNP (FC) = 2,500 + 300 - 2,400 = 400 crore |