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:
Answer & explanation
Correct answer: option 3
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