Discussion
Net factor income from abroad is:
Answer: C
Net factor income from abroad is the difference between the gross national product and the gross domestic product, GNP minus GDP. The other options are differences involving depreciation. The answer is option C.
In national accounts GNP = GDP + net factor income from abroad, so GNP - GDP is exactly that net income. GDP - NDP and GNP - NNP are depreciation, and GDP - NNP mixes depreciation and net factor income, which is why only option C fits.
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