NDP at FC plus net factor income from abroad is equal to ________.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. NNP at FC.
- To convert NDP at FC to NNP at FC, we add the net factor income from abroad.
- This adjustment accounts for the income residents earn from abroad minus what foreigners earn domestically, reflecting the total income of nationals rather than just the income generated within the country's borders.