Question

Which expression represents Private Income under the National Income Approach (NNP at Factor Cost)?

Options

• \[\text{NNP at FC} + \text{Government property \& entrepreneurial income} + \text{Savings of non-departmental govt. enterprises}\]

• \[\text{National Income} + \text{Social securities} + \text{Profits \& surpluses of public undertakings}\]

• \[\text{Domestic Income} + \text{Government income} - \text{Net factor income from abroad}\]

• \[\text{NNP at FC} - \text{Government property \& entrepreneurial income} - \text{Savings of non-departmental govt. enterprises} + \text{Interest on national debt} + \text{Net current transfers from government} + \text{Net current transfers from abroad}\]

Answer 1

The NNP at Factor Cost approach deducts income belonging to the government sector. It then adds Interest on national debt and net current transfers received by the private sector.