WBCS.LIVE practice question

The macroeconomic indicator "Net National Product (NNP) at factor cost" is identical to which of the following?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Gross Domestic Product (GDP)
  2. National Income
  3. Personal Income
  4. Net Domestic Product (NDP)

Correct answer and explanation

Correct answer: National Income

Explanation: āœ… Correct Answer: B) National Income šŸ“š Explanation: In macroeconomics, Net National Product (NNP) at factor cost is officially recognized as the exact true measure of 'National Income'. It is carefully calculated by subtracting depreciation from Gross National Product (GNP) and then making crucial adjustments for indirect taxes and subsidies to reflect the actual cost paid to the factors of production.