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National Income · UPSC CDS/OTA · Question 33 of 66

National Income: Which component differentiates GNP from GDP?

Step-by-step solution. National Income for UPSC CDS/OTA.

Topic
National Income
Subject
General Studies
Difficulty
Moderate
Solve Time
45-60 sec

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Q · National IncomeModerate · 45s

Which component differentiates GNP from GDP?

TopicNational Income
Question Typemultiple choice
DifficultyModerate
Marking+1 / −0.33
Test Duration30 min

Step-by-Step Solution

The complete worked solution.

Every step explained - no skipped algebra.

GNP = GDP + NFIA. A) Net indirect taxes convert factor cost/market price; C) Depreciation differentiates gross vs net; D) Inventories affect both GDP and GNP similarly.

Final Answer: Option B - Net Factor Income from Abroad (NFIA)
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Which component differentiates GNP from GDP? - National Income (General Studies) Solved Question