Q. Consider the following statements:
1.GNP is calculated by adding net factor income from abroad to GDP.
2.NNP is derived by subtracting depreciation from GNP.
3.Personal Disposable Income (PDI) is the income left with households after paying personal taxes and non-tax payments.
Which of the above statements is/are correct?
Quarterly-SFG-Jan-to-March
Red Book

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1, 2, and 3

[D] 1 only

Answer: C
Notes:

Explanation:

  • GNP is calculated by adding net factor income from abroad to GDP.
  • NNP is derived by subtracting depreciation from GNP.
  • PDI is the income left with households after paying personal taxes and non-tax payments.

Source- 12th NCERT: Economics: Macroeconomics

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