Use this data below to answer the question
The following data relates to the national income of a country.
Gross domestic product = $2800
Net factor income from abroad = $250
Depreciation = $700
Indirect taxes = $120
What is the country’s Net National Product (NNP) at factor cost?
- $3.050
- $2,680
-
$2,230
- $2.220
The correct answer is: C
Explanation
NNP at factor cost is the net money value of all the goods and services produced by residents of a country plus net factor income from abroad.
Therefore NNP at FC = 2800 + 250 - (120 + 700)
3050 - 820 = 2230