GNP at MP less gives us ____GDP at MP.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. net factor income from abroad.
GNP at MP (Gross National Product at Market Price) is related to GDP at MP (Gross Domestic Product at Market Price) through Net Factor Income from Abroad (NFIA).
GNP at MP = GDP at MP + NFIA.
Indirect Taxes:These are taxes levied on goods and services, such as sales tax, excise duty, and value-added tax (VAT). They are included in the market price of goods and services.
Subsidies:These are government payments to producers, which reduce their production costs. They lower the market prices of goods and services.
Depreciation:This is the decrease in the value of capital assets (like machinery) over time due to wear and tear or obsolescence.Depreciation is used to calculate the difference between gross and net values. (Gross Domestic Product - Depreciation = Net Domestic product)