Economics • Economic BasicsMedium
In macroeconomic accounting, what does the term 'Net National Product at Factor Cost' commonly represent?
A. Gross Domestic Product
B. National Income✓ Correct Answer
C. Personal Income
D. Disposable Income
💡 Solution & Explanation
Net National Product at Factor Cost is officially recognized as National Income, representing the total earnings of residents of a country from producing goods and services. It is calculated by subtracting depreciation from Gross National Product and adjusting indirect taxes and subsidies. Personal Income measures the total income received by individuals before payment of direct personal taxes.
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