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Calculate NNP at FC from GNP at MP.
(1) GNP at MP - 5069
(2) Depreciation - 626
(3) Indirect tax - 475
(4) Subsidies – 49
4000
5000
4015
4017
5017
To find NNP at Factor Cost (NNP at FC) from GNP at Market Price (GNP at MP), follow these steps:
- GNP at MP: 5069
- Depreciation: Subtract 626
- Indirect taxes: Subtract 475
- Subsidies: Add 49
The formula is:
$$ \text{NNP at FC} = \text{GNP at MP} - \text{Depreciation} - \text{Indirect taxes} + \text{Subsidies} $$
$$ \text{NNP at FC} = 5069 - 626 - 475 + 49 $$
$$ \text{NNP at FC} = 4017 $$
- Option 1: 4000
- Option 2: 5000
- Option 3: 4015
- Option 4: 4017
- Option 5: 5017
The correct answer is Option 4: 4017
By: Parvesh Mehta ProfileResourcesReport error
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