Question

t shape difference between NDPMP and NDPFC​

Answer 1

Answer:

NDPmp refers to the market value of final goods and services produced by all the production units in the domestic territory of a country during a given time period. It excludes depreciation and includes indirect taxes. It is equal to the net value added at market price.

GNPmp refers to the value of goods and services produced by the normal residents of country within the country and outside the country too. NDPfc refers to the aggregate of factor income earned by all the factors of production in form of rent, interest, profit and wages.

Answer 2

Net Indirect Taxes is included in NDPmp and it is excluded in NDPfc.

Explanation:

Difference between NDPmp and NDPfc​:

• NDPmp refers to the net value of goods and services produced by the normal residents of country within the country and outside the country too while NDP refers to the aggregate of factor income earned by all the factors of production in form of rent, interest, profit and wages.

• NDPmp includes the net indirect taxes while NDPfc excludes the net indirect taxes.

• Numerically, NDPmp = GDPmp – Depreciation whereas NDPfc= NDPmp - Net Indirect taxes.