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 ...

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?

Answer Details

Net National Product (NNP) is the total value of all goods and services produced by the residents of a country in a given period, minus the value of capital that has been used up in the process of production. To calculate NNP at factor cost, we need to start with Gross Domestic Product (GDP) and make adjustments for net factor income from abroad, depreciation, and indirect taxes. Using the given data, we can calculate NNP at factor cost as follows: NNP at factor cost = GDP - depreciation + net factor income from abroad - indirect taxes NNP at factor cost = $2800 - $700 + $250 - $120 NNP at factor cost = $2,230 Therefore, the country's Net National Product (NNP) at factor cost is $2,230.