Net Domestic Product at factor cost (NDP at FC) is the income earned by the factors in the form of wages, profits, rent, interest etc. Net national product (NNP) is gross national product (GNP), the total value of finished goods and services produced by a country's citizens overseas and domestic…

Gross Domestic Product at Factor Cost in Microeconomics, Search For UK Microeconomics Homework Solution At Our Stop, Inch Closer To Your Exam Goals With Our Management Homework Help. It is equal to the gross value added at factor cost. Calculate (a) Net National Product at market price, and (b) Gross Domestic Product at factor cost. asked Dec 6, 2018 in Economics by kajalk ( 77.6k points) cbse 100, which is given to different factors of production as wages, rents, interest and profits. That is, by deducting net indirect taxes from gross domestic product at market price. Gross National Product at Market Price! (a) Meaning: GNP at market price is defined as “the market value of all the final goods and services produced in the domestic territory of a country by normal residents during an accounting year including net factor income from abroad. Gross national product at factor cost is defined as the value of all final goods and services at market price produced within the produced within the domestic territory of the country in an accounting year including net factor income from abroad minus net indirect taxes. These payments to factors are called production cost or factor cost. Gross domestic product at factor cost is also called gross domestic income.

According to Hanson, “The Gross Domestic Product at factor cost is the sum of net value added by all the producers in the domestic territory of the country and consumption of fixed capital during an accounting year.”, Gross Domestic Product at Factor Cost = Net, Domestic Product at Factor Cost + Depreciation. In exchange, they receive their remuneration in the form of rent, wages, interest and profit. within the domestic territory of a country. Net domestic product at market price = Net- national product at market price – Net factor income from abroad. There is another way of calculating the GDP at factor cost. Where a gross domestic product fails to see a full picture for countries that utilize foreign manufacturing, the NNP wins. The net national product formula is a simple way to determine a country's true economic success while regarding all of the goods and services they've produced overseas. Gross domestic product at factor cost is the sum of net value added by all the producers in the domestic territory of the country and consumption of fixed capital during an accounting year. Production is the co-operative working of all the factors of production, land, labour, capital, and enterprise. Hence, net national income at factor cost shows the income actually received by the factors of production. From the view point of the firm, it is cost and from the view point of factors, it is their income. Difference between GDP at factor cost and GDP at market price: Gross domestic product at factor cost includes all the elements of GDP at market price except net indirect taxes (indirect taxes-subsidies). Let us presume that the actual cost of producing a certain output is Rs.

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