Match the following:
| 1. | NNPFC | 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 |
Answer & explanation
Correct answer: option 2
- National income is also denoted as the net national product at factor cost i.e. NNPFC.
- 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.