WAEC - Economics (2021 - No. 32)

Use this data below to answer the question

The following data relates to the national income of a country.
Gross domestic product = $2800
Net factor income from abroad = $250
Depreciation = $700
Indirect taxes = $120

 

What is the country's Net National Product (NNP) at factor cost?

$3.050
$2,680
$2,230
$2.220

Explanation

NNP at factor cost is the net money value of all the goods and services produced by residents of a country plus net factor income from abroad. 

Therefore NNP at FC = 2800 + 250 - (120 + 700)

3050 - 820 = 2230

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