Question

Explain the concept of Gross National Product at Market Price.

Answer 1

Gross National Product at Market Price (GNP at MP) refers to the total monetary value of all final goods and services produced by the residents of a country in a given period (usually a year), regardless of whether the production occurs within the country's borders or abroad, valued at market prices.

GNP at MP = GDP at MP + Net Factor Income from Abroad (NFIA)

A country’s GDP at Market Price = ₹10,000 crore

Net Factor Income from Abroad = ₹500 crore

GNP at MP = 10,000 + 500

= ₹10,500 crore