Question

What is the difference between GNP_MP and NDP_Fc?

Answer 1

Basis	GNP MP	NDPFc
Full Form	Gross National Product at Market Prices	Net Domestic Product at Factor Cost
Definition	It is the total market value of all final goods and services produced by the normal residents of a country (within and outside) in a year, including depreciation and net indirect taxes.	It is the total factor income earned by all factors of production within the domestic territory of a country in a year, excluding depreciation and net indirect taxes.
Includes/Excludes	Includes net factor income from abroad and indirect taxes and includes depreciation.	Excludes net factor income from abroad, indirect taxes, and depreciation.
Scope	Reflects national production (by citizens/residents), regardless of where the production occurs.	Reflects domestic income (earned within the country's borders), regardless of whether the income is earned by residents or non-residents.
Depreciation	Included (Gross measure)	Excluded (Net measure)
Tax/Subsidy Treatment	Calculated at market prices (includes indirect taxes and excludes subsidies).	Calculated at factor cost (excludes indirect taxes and includes subsidies).
Purpose	Used to measure total national output and income, including all taxes and depreciation.	Used to measure the actual income of all producers in the domestic territory, net of capital consumption and taxes.