Question

How GNP at factor cost different from national income?

Answer 1

Sr. No.	GNP at Factor Cost	National Income  (NNP at Factor Cost)
1.	GNP at Factor Cost.	National Income (NNP at Factor Cost).
2.	Gross National Product at factor cost.	Net national product at factor cost.
3.	Includes depreciation (gross measure).	Excludes depreciation (net measure).
4.	Shows total income earned by residents before capital loss.	Shows actual income after deducting wear and tear of capital.
5.	Formula: GNP at FC = GDP at FC + Net Factor Income from Abroad.	Formula: NNP at FC = GNP at FC − Depreciation.