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If net factor income from abroad is deducted from Net National Product, the result is:
AGross National Product
BPersonal income
CNet Domestic Product
DDisposable income
Answer & Solution
Correct answer: C. Net Domestic Product
1. Two independent adjustments separate these aggregates: depreciation turns gross into net, and net factor income from abroad turns domestic into national.
2. Net National Product is a national measure, so removing net factor income from abroad brings it back to the domestic territory.
3. The result is therefore Net Domestic Product.
4. Adding depreciation back instead would give Gross National Product, which is the trap in option A.
_Source: TN HSC Class 12 Economics (Samacheer Kalvi, Govt of Tamil Nadu), Ch 2 "National Income", Part-A exercises and §2.4_
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