MCQs · Q2
Q.Net Factor Income from Abroad (NFIA) is correctly defined as:
(a) Factor income received from abroad minus factor income paid to abroad
(b) Factor income paid to abroad minus factor income received from abroad
(c) GNP minus NNP
(d) GDP plus Consumption of Fixed Capital
Gujarat GsebTextbookSubjectiveImportance★★★★★est
75% · 9/12 Questions
You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.
Start your 14-day free trial to unlock the full solution →NFIA links the domestic concept (GDP) to the national concept (GNP): .
By definition, — option (a).
Option (b) simply reverses the sign, which would make NFIA negative whenever a country's residents earn more abroad than non-residents earn domestically — the opposite of the correct relationship. Option (c) is incorrect because GNP minus NNP equals Depreciation, not NFIA. Option (d) is also incorrect — GDP plus Consump …
Unlock everything free for 14 days
- Full step-by-step solutions
- Concept-first explanations
- Methods, shortcuts & mistakes
- PYQ mapping + timed mock tests
Full access for 14 days. No credit card required.