Question

Mention the situations in which following equations will hold true:
(i)National Income = Domestic Income
(ii) GDP at fc> GDP at mp
(iii) NNP at fc <NDP at fc
(IV) GDP at fc= GDP at mp
(V) Domestic Income is greater than National Income.​

Answer 1

Answer:

i) national income is equal to domestic income when there is no relation with the outer world i.e there is no export and import

ii) GDP is greater at factor cost will be greater than GDP at market price when subsides are more than taxes or taxes are not considered

iii) NNP at fc will be greater than NDP at when mp when NIFA will be greater

iv) GDP at fc = GDP at mp when net indirect taxes is zero

v) domestic income will be greater than national income when net factor income from abroad will be in negative.

hope it helps!!