Calculate the factor income from Abroad from the following :
| (₹ in crore) | ||
| (a) | NNP at market price | 550 |
| (b) | Net Indirect taxes | 30 |
| (c)p | NVA at factor cost | 540 |
| (d) | Factor income to Abroad | 50 |
Answer & explanation
Correct answer: option 3
The correct answer is option (3) : ₹30 Crore
Net value added at factor cost is the sum total of all the factor payments. It is the result of factors of production that residents get in the form of wages, salaries, dividends, etc.
Thus,
NNP at FC= NVA at FC + NFIA
NNP at MP- Net Indirect Taxes= NVA at FC + Factor income from Abroad - Factor income to Abroad
Factor income from Abroad= NNP at MP- Net Indirect Taxes -NVA at FC + Factor income to Abroad
= 550 - 30 - 540 + 50
= 30 Crores