Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

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
Options:

NNPFC = 1,15,000

GNPFC = 1,25,000

NNPFC = 1,55,000

GNPFC = 1,65,000

NNPFC = 75,000

GNPFC = 85,000

NNPFC = 1,35,000

GNPFC = 1,05,000

Correct Answer:

NNPFC = 1,15,000

GNPFC = 1,25,000

Explanation:

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