Answer to Question #123459 in Macroeconomics for Vanalika

Question

GNPatFC =6215
Depreciation =565
Subsidies= 560
NDP atFC=5160
Factor income from abroad =230
Calculate factor income to abroad

Answer 1

Factor income to abroad refers to the factor income paid to the normal residents of other countries (i.e. non-residents) for their factor services within the economic territory.

Factor Income to abroad= NDP at MP + Depreciation + Factor income from abroad - GNP at FC + Subsidies

Factor Income to abroad =5160+565+230-6215+560

Factor Income to abroad =300