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Economics · 2025 · 3 marks
CBSE 2025 · Region 6 · Set 1 · Q12
(a) Calculate Domestic Income (NDP_FC ) from the data given below: S. No. Particulars Amount (in ₹ lakh) (i) Gross National Product at market price…
Calculate Domestic Income (NDP$\displaystyle _{FC}$) from the data given below :
| S. No. | Particulars | Amount (in ₹ lakh) |
| (i) | Gross National Product at market price | $\displaystyle 2,500$ |
| (ii) | Consumption of fixed capital | $\displaystyle 200$ |
| (iii) | Goods and Services Tax | $\displaystyle 20$ |
| (iv) | Subsidies | $\displaystyle 50$ |
| (v) | Net Factor Income from Abroad | $\displaystyle 50$ |
| (vi) | Changes in Stocks | $\displaystyle 30$ |
| (vii) | Unexpected loss of a fixed asset | $\displaystyle 500$ |
Define Net Factor Income from Abroad (NFIA) and discuss its components.
Marking-scheme solution
Domestic Income (NDP$\displaystyle _{FC}$) = (i) – (ii) – (v) – {(iii) – (iv)}
= $\displaystyle 2,500$ – $\displaystyle 200$ – $\displaystyle 50$ – {$\displaystyle 20$ – $\displaystyle 50$}
= ₹ $\displaystyle 2,280$ lakh
Net Factor Income from Abroad (NFIA) is the difference between factor income received from the rest of the world and factor income paid to the rest of the world.
Components of NFIA:
Net Compensation of Employees (COE) refers to the difference between compensation earned by normal residents from abroad and compensation paid to non-residents working within domestic territory.
Net Income from Property and Entrepreneurship refers to difference between income earned by residents from rent, interest, and profits and similar payments made to non-residents.
Net retained earnings refers to difference between retained earnings of resident companies overseas and foreign companies operating domestically.
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CBSE Class 12 Economics past-paper question from the 2025 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.