Question

Write short note on net national product at factor cost.

Answer 1

NNP at Factor Cost( Net National Product at Factor Cost) is the net money value of all the goods and services produces by normal residents of a country. It includes income of Indian citizens whether living in or outside India. It is net of the national income which means, it do not include depreciation.

Answer 2

Answer:

NNP at variable value is the NNP at market price less indirect net taxes and subsidy addition.

• Net national product is the value of all final goods and services produced in a given period by the citizens of the country overseas and domestic. It is measured at the value of the product and the profit variable.
• NNP at factor cost is the NNP at market price minus the net indirect taxes and an added subsidy as indirect tax is the extra cost imposed by the government which is not a real cost of production and similarly the subsidy is the reduction in total cost. Therefore, indirect taxes are subtracted for an original variable costs and exemptions are added to the cost of the NNP component.