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Define GNP at factor cost. How is it different from national income? |
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Answer» GNPFC is the sum total of factor income earned by normal residents of a country, inclusive of depreciation during an accounting year. GNPFC = NNPFC + Depreciation Whereas, National Income (NNPFC) is the sum total of factor income earned by normal residents of a country during an accounting year. NNP FC = NDP FC + Net factor income from abroad GNP FC includes depreciation but NNPFC (National Income) does not include depreciation. |
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