Question
Economics Question on National Income Accounting
If the domestic income of an economy is 2500 crores, the factor income from abroad is 300 crores, the consumption of fixed capital is 150 crores and Net National Product at factor cost is 2400 crores, then the Factor income paid to abroad will be:
A
100 crores
B
(-) 100 crores
C
400 crores
D
250 crores
Answer
(-) 100 crores
Explanation
Solution
The factor income paid abroad is calculated by subtracting from the net national product. In this case, it equals (-) 100 crores.