Question

Distinguish
between
GDPMP
and
GNPFC​

Answer 1

Answer:

The difference between both arise due to 1) Net factor income from abroad. and 2) Net indirect taxes. In GDPMP Net factor income from abroad is not included but it includes net indirect taxes. GNPFC = GDPMp + net factor income from abroad – net indirect taxesRead more on Sarthaks.com - https://www.sarthaks.com/236565/distinguish-between-gdpmp-and-gnpfc

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Answer 2

see , gdp is gross domestic product which is market value of produced goods in an economy in a particular year so this will not help in calculating national income so for that we convert gdp into gnp- gross national product

so basically we convert

first gross into net income like

if we produced anything than is natural we will be using something from our side so we will not count that in gross we will subtract as depriciation

like total goods produced -100

gross production=100

depriciation= 10 so

net income=90

next convert

domestic into national so for that we subtract factor income from abroad from factor income to abroad so whatever income will come that will be your national income

third

convert mp into factor income which is the factor income of 4 factor of production