Question

Distinguish between GDPfc and NDPfc.?

Answer 1

NDPfc:- Net Domestic Income or Net Domestic Product at factor Cost 

(NDPfc) is the sum total of factor incomes (rent + profit + wages + interest) generated within the domestic territory of a country during a year. 

NDPfc = NDP mp – Net Indirect taxes 

        Or 

NDPfc = NDPmp - Indirect tax + subsidy 

GDPfc: Gross Domestic product at factor cost (GDPfc) is the sum total of factor incomes (rent + interest + profit + Wages) generated within the domestic territory of a country, along with consumption of fixed capital during a year. 

GDPfc = NDPfc + Depreciation 

Or 

NDPfc = GDPfc – Depreciation