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Calculate Factor Income to abroad ....

Calculate Factor Income to abroad .

Text Solution

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The correct Answer is:
Factor Income to abroad = ₹ 300 crores
Note : Replacement of Fixed Capital is another name for Depreciation.

GNP at MP = NDP at FC + Replacement of Fixed Capital + (Factor Income from abroad - Factor Income to abroad ) + (Indirect Taxes - Subsidies)
It means :
Factor Income to abroad
= NDP at FC + Replacement of Fixed Capital + Factor Income from abroad + (Indirect Taxes - Subsidies ) - GNP at MP
= 3, 900 + 100 + 700 (300 - 200)- 4, 500
= ₹ 300 crores
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