Question

If NDPfc is Rs. 4000 crores and NFIA is ( -5) crores, how much Will be the National Income?​

Answer 1

Answer:

If economic subsidies are added to and indirect taxes are subtracted from the national income market prices, then it will be equal to National Income(NNP at factor cost).

Formula:

NNP(at market price) - Indirect tax + Subsidies = NNP(at factor cost)

NNP(at market price) - Net Indirect tax = NNP(at factor cost)

Here, Net Indirect tax= Indirect tax - Subsidies