In a country, the value of Net domestic product at factor cost is 1000 crores, depreciation is ₹30 crores, factor income to abroad is 60 crores, net indirect taxes are 70 crores and factor income from abroad is 40 crores. The National Income of this country is :

980 crores

The correct answer is option (3) : 980 crores

The National Income (NNP at factor cost ) = Net Domestic Product at Factor Cost + Net Factor Income from Abroad

Given the following values :

Net Domestic Product at Factor Cost = ₹1000 crores

Factor income to abroad = ₹60 crores

Factor income from abroad = ₹40 crores

NFIA=Factor income from abroad- Factor income to abroad

      = 40-60

      = -20 Crores

Let's substitute these values into the formula :

National Income = 1000 - 20

National Income = 980 crores

So, the National Income of this country is 980 crores.