Which of the following statements are correct?
(A) GNP at market prices is the value of final goods and services produced by the normal residents of India in a year.
(B) NNP at factor cost is bound by production within the national boundaries.
(C) GNP at market prices = GDP at market prices + Net factor income from abroad.
(D) NNP at factor cost = NDP at factor cost + Net factor income from abroad.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A), (C) and (D) only
National aggregates count the output of a country’s normal residents, wherever they produce. Domestic plus NFIA gives national.
(A) GNP at market prices is the value of final goods and services produced by the normal residents of India in a year. — True. GNP at market prices is the output of the normal residents of India.
(B) NNP at factor cost is bound by production within the national boundaries. — False. NNP at factor cost is a national product and is not bound by the national boundaries.
(C) GNP at market prices = GDP at market prices + Net factor income from abroad. — True. GNPMP = GDPMP + NFIA.
(D) NNP at factor cost = NDP at factor cost + Net factor income from abroad. — True. National income is the net domestic factor income plus NFIA.
NCERT (2026-27): “Table 2.4: Basic National Income Aggregates GNPMP is the value of all the final goods and services that are produced by the normal residents of India and is measured at the market prices, in a year. “Table 2.4: Basic National Income Aggregates … It is the National Product and is not bound by production in the national boundaries. It is the net domestic factor income added with the net factor income from abroad.” “Gross National Product (GNP) … Hence, GNP ≡ GDP + Net factor income from abroad …” |