Question

Give the difference between Gross National Product at market price and Net domestic product at factor cost.

What is the difference between GNP_MP and NDP_FC?

Answer 1

The entire value of finished products and services produced in a nation over a given time period, such as a year, is determined by the Gross National Product (GNP) at market price mp. The net property income of elements generated overseas makes up this metric. Conversely, the value of finished goods and services produced domestically in terms of factor income is measured by the Net Domestic Product at Factor Cost (FC). The depreciation cost of capital is not included in this calculation.