Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Which among the following equation is correct?

Options:

NDPFC = GNPMP - Depreciation - NFIA - NIT

GDPMP = NDPFC + Depreciation - NIT

NDPFC = NNPFC + NFIA - NIT

GNPFC = NNPMP + Depreciation + NIT

Correct Answer:

NDPFC = GNPMP - Depreciation - NFIA - NIT

Explanation:

NDPFC =GDPMP - Depreciation- Net Indirect Taxes (A)

GNPMP = GDPMP + NFIA i.e. GDPMP  =GNPMP - NFIA (B)

Combining A and B we get

NDPFC = GNPMP - Depreciation - NFIA - NIT