Match the following: 1. NNPFC A

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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Match the following:

1.	NNP_FC	A.	Net indirect tax
2.	Market price to factor cost	B.	Depreciation
3.	Gross to net	C.	National income
4.	Domestic product to national product	D.	Net factor income from abroad

Options:

1-B, 2-C, 3-A, 4-D

1-C, 2-A, 3-B, 4-D

1-C, 2-A, 3-D, 4-B

1-A, 2-D, 3-B, 4-C

Correct Answer:

1-C, 2-A, 3-B, 4-D

Explanation:

National income is also denoted as the net national product at factor cost i.e. NNP_FC.
For converting market price to factor cost we need to adjust net indirect tax.
In order to convert gross into net we will deduct depreciation from the same.
To convert the domestic product to national product net factor income from abroad is adjusted in the calculation.