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 :
Answer & explanation
Correct answer: option 3
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.