Question

The sum of net value added at factor cost of all the producing units of an economy gives:

A. Gross domestic product at market price

B. Net domestic product at market price

C. Net domestic product at factor cost.

D. Gross domestic product at factor cost

​

Answer 1

Answer:

The net value added at factor cost of a producing unit is the national income for the whole economy as it is the net value of the output produced in an economy. Therefore, it also refers to the sum of factor payments as it is the accumulation of all factor income in the economy earned at a given point of time.