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What is Net National Product? |
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Answer» Net National Product at Factor cost or national income is the sum total of factor incomes (Rent + interest + Profit+ wages) generated within the domestic territory of country, along with net factor income from abroad during a year. NNPFC is the sum total of sector incomes earned by normal residents of a country during a year. NNPFC = NDPFC + Net Factor Income from abroad. NDPFC is a domestic variable and hence for converting it into NNPFC net factor income from abroad is added in it. |
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