Multiple choice

Net National Product at factor cost is

  1. equal to national income

  2. more than national income

  3. less than national income

  4. always more than gross national product
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Net National Product at factor cost is exactly equal to National Income by definition. NNP at factor cost represents the total income earned by factors of production (land, labor, capital, enterprise) after accounting for depreciation. Option B is incorrect because NNP cannot exceed National Income when they are the same measure. Option C is incorrect for the same reason.

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