Solved UPSC CDS/OTA Question
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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)