GDP + Net factor income from abroad =

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  1. NDP
  2. Depreciation
  3. GNP
  4. NNP

Answer (Detailed Solution Below)

Option 3 : GNP
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Correct Answer is GNP

Key Points

  • Gross National Product is defined as total value of goods and services produced by the citizens of a country. As it specifically mentions about the citizens of a country, the income of foreigners are exempted from this. 
  • Net Factor income is defined as the difference between the factor income earned by the normal residents of a country and income earned by the foreigners in the geographical territory of that particular country. 
  • Gross Domestic Product + Net factor income from abroad = Gross National Product.
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