On the basis of the data given, What will be the value of national income and GNPFC
| NDPFC | 1,20,000 |
| Depreciation | 10,000 |
| Net indirect tax | 19,400 |
| Net income from abroad | -5000 |
Answer & explanation
Correct answer: option 1
The correct answer is Option 1: NNPFC = 1,15,000, GNPFC = 1,25,000
National income is also denoted with NNPFC
NNPFC = NDPFC + Net factor income from abroad
NNPFC = 1,20,000 + (- 5000 )
NNPFC = 1,20,000 - 5,000 = 1,15,000
GNPFC = NNPFC + Depreciation
GNPFC = 1,15,000 + 10,000
GNPFC = 1,25,000