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Question
How is Gross national product at factor cost is different from National income?
Distinguish Between
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Solution
| Basis | GNP at Factor Cost (GNPFC) | National Income (NNPFC) |
| Depreciation | Not deducted (Gross) | Deducted (Net) |
| Represents | Total income earned by nationals before depreciation | Total income earned by nationals after depreciation |
| Known As | Gross National Product at Factor Cost | Net National Product at Factor Cost |
| Formula | GNPFC = GDPFC + NFIA | NNPFC = GNPFC – Depreciation |
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