Advertisements
Advertisements
Question
Difference between GNPMP and NDPFc·
Distinguish Between
Advertisements
Solution
| Basis | GNP at Market Price | NDP at Factor Cost |
| Scope | Measures the total value of goods and services produced by nationals (within & abroad) | Measures net value of goods and services produced within domestic territory |
| Includes/Excludes | Includes Net Factor Income from Abroad (NFIA) | Excludes NFIA, only considers domestic production |
| Depreciation | Includes depreciation | Excludes depreciation |
| Price Valuation | At market price – includes indirect taxes and excludes subsidies | At factor cost – excludes indirect taxes, includes subsidies |
| Production Area | Includes production by residents (nationals) inside and outside the country | Includes production within domestic territory only, regardless of nationality |
shaalaa.com
Is there an error in this question or solution?
Chapter 32: Concepts of National Income - TEST QUESTIONS [Page 32.19]
