Use this data below to answer the question
The following data relates to the national income of a country.
Gross domestic product = $2800
Net factor income from abroad = $250
Depreciation = $700
Indirect taxes = $120
What is the country's Net National Product (NNP) at factor cost?
$3.050
$2,680
$2,230
$2.220
Explanation
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Discussions (5)
Calculate Gross National Product (GNP):
GNP=GDP+Net Factor Income from Abroad
$GNP = $2800 + $250 = 3050
Calculate Net National Product at Market Price:
NNP
market price
=GNP−Depreciation
$NNP_{\text{market price}} = $3050 - $700 = 2350
Calculate Net National Product at Factor Cost:
NNP
factor cost
=NNP
market price
−Indirect Taxes
$NNP_{\text{factor cost}} = $2350 - $120 = 2230
Therefore, the country's Net National Product (NNP) at factor cost is $2230.
i dont think the "chokes" for this papers are correct. most of them have unreasonable answeres that your just like how
net national income = gross domestic product- depreciation
i.e 2800-700=2100
so the answer is wrong neither is it there in the option
