Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Net National Product at factor cost (NNPFC) is defined as :

Options:

Value of output received by the factors of production belonging to a country in a year

The sum of the income earned by all factors in the production in the form of wages, profit, rent and interest etc. belonging to a country during a year. It includes net factor income from Abroad

The value of all final goods and services produced by the normal residents of country

The Gross domestic product at market price less net product taxes

Correct Answer:

The sum of the income earned by all factors in the production in the form of wages, profit, rent and interest etc. belonging to a country during a year. It includes net factor income from Abroad

Explanation:

Net National Product at factor cost (NNPFC) or National Income is defined as: The sum of the income earned by all factors in production in the form of wages, profit, rent, and interest, etc., belonging to a country during a year. It includes net factor income from abroad.