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NDP at FC plus net factor income from abroad is equal to _______.
Question

NDP at FC plus net factor income from abroad is equal to _______.

A.

 NNP at MP

B.

NNP at FC

C.

GDP at FC

D.

GNP at MP
 

Correct option is B

The Correct answer is (b)
The term "NDP at FC" refers to Net Domestic Product at Factor Cost. This metric measures the net value of goods and services produced within the territorial boundaries of a country, accounting for depreciation, and valuing output using the costs incurred by factors of production.
Adding "net factor income from abroad" to NDP at FC adjusts it for income earned by residents from investments abroad minus income earned by foreigners from investments within the country. This modifies the domestic product (NDP) into a national product (NNP), and since it's still calculated at factor cost (FC), it transitions to NNP at FC.
Therefore, NDP at FC plus net factor income from abroad is equal to (b) NNP at FC
 

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