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Which formula obtains Net National Product at Factor Cost (NNPFC) from Net National Product at Market Prices (NNPMP)?

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Question

Which formula obtains Net National Product at Factor Cost (NNPFC) from Net National Product at Market Prices (NNPMP)?

Options

  • \[NNPFC = NNPMP - Depreciation\]

  • \[NNPFC = NDPMP - Net\ Product\ Taxes - Net\ Production\ Taxes\]

  • \[NNPFC = NNPMP - Net\ Product\ Taxes - Net\ Production\ Taxes\]

  • \[NNPFC = NNPMP + NFIA\]

MCQ
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Solution

To move from NNPMP to NNPFC, Net Product Taxes and Net Production Taxes are deducted. Therefore, \[NNPFC = NNPMP - Net\ Product\ Taxes - Net\ Production\ Taxes\].

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