Which of the following is a correct statement?

Question

Accepted Answer

Step-by-step explanation:

- Definition: National Income is the Net National Product at Factor Cost, i.e. $NNP_{FC}$.
- Relation from GNP: $NNP_{MP} = GNP_{MP} - Depreciation$. To convert market prices to factor cost: $NNP_{FC} = NNP_{MP} - 	ext{Indirect Taxes} + 	ext{Subsidies}$. Thus National Income = $NNP_{FC}$.
- Check options:
  - (1) GNP at FC is gross (includes depreciation) → not net, so incorrect.
  - (2) NDP at MP is net domestic product at market price (domestic, not national) → incorrect.
  - (3) GDP at MP is gross domestic product at market price → incorrect.
  - (4) NNP at FC equals National Income by definition → correct.

FINAL_ANSWER: d

Answer

Answer

Answer