Net Domestic Product at Factor Cost Solution

STEP 0: Pre-Calculation Summary
Formula Used
Net Domestic Product at Factor Cost = Net Domestic Product at Market Price-Net Indirect Taxes
NDPfc = NDPmp-NIT
This formula uses 3 Variables
Variables Used
Net Domestic Product at Factor Cost - Net Domestic Product at Factor Cost is an economic indicator that measures the value of all goods and services produced within a country's borders during a specific time period.
Net Domestic Product at Market Price - Net Domestic Product at Market Price is an economic indicator that measures the value of all goods and services produced within a country's borders during a particular time period, minus depreciation.
Net Indirect Taxes - Net Indirect Taxes refers to the difference between indirect taxes collected by the government on the production and sale of goods and services and subsidies provided by the government to producers.
STEP 1: Convert Input(s) to Base Unit
Net Domestic Product at Market Price: 23500 --> No Conversion Required
Net Indirect Taxes: 3000 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
NDPfc = NDPmp-NIT --> 23500-3000
Evaluating ... ...
NDPfc = 20500
STEP 3: Convert Result to Output's Unit
20500 --> No Conversion Required
FINAL ANSWER
20500 <-- Net Domestic Product at Factor Cost
(Calculation completed in 00.004 seconds)

Credits

Created by Aashna
IGNOU (IGNOU), India
Aashna has created this Calculator and 50+ more calculators!
Verified by Vishnu K
BMS College of Engineering (BMSCE), Bangalore
Vishnu K has verified this Calculator and 200+ more calculators!

20 Macroeconomics Calculators

Operating Surplus
Go Operating Surplus = Value of Output-Intermediate Consumption-Compensation of Employees-Mixed Income-Consumption of Fixed Capital-Net Indirect Taxes
Components of Aggregate Demand
Go Components of Aggregate Demand = Private Consumption Expenditure+Investment Expenditure+Government Expenditure+Net Exports
Real Effective Exchange Rate
Go Real Effective Exchange Rate = (Consumer Price Index of Domestic Nation*Nominal Effective Exchange Rate)/Consumer Price Index of Foreign Country
Net Factor Income from Abroad
Go Net Factor Income from Abroad = Net Compensation of Employees+Net Income from Property and Entrepreneurship+Net Retained Earnings
National Disposable Income
Go National Disposable Income = National Income+Net Indirect Taxes+Net Current Transfers from the Rest of the World
Gross Domestic Product at Factor Cost
Go Gross Domestic Product at Factor Cost = Gross Domestic Product at Market Price+Subsidies-Indirect Taxes
Change in Money Supply
Go Change in Money Supply = (1/Required Reserve Ratio)*Change in Bank Reserves-(Initial Deposit Amount)
Personal Disposable Income
Go Personal Disposable Income = Personal Income-Personal Taxes-Miscellaneous Receipts of Government
Life Expectancy
Go Life Expectancy = Current Age of the Individual+Average Life Expectancy-Adjustment Factor
Private Final Consumption Expenditure
Go Private Final Consumption Expenditure = Household Final Consumption Expenditure+Non Profit Private Institutions FCE
Gross National Product at Market Price
Go Gross National Product at Market Price = Gross Domestic Product at Factor Cost+Net Factor Income from Abroad
Net Domestic Product at Factor Cost
Go Net Domestic Product at Factor Cost = Net Domestic Product at Market Price-Net Indirect Taxes
Net Domestic Product at Market Price
Go Net Domestic Product at Market Price = Gross Domestic Product at Market Price-Depreciation
Growth Rate of Money Supply
Go Growth Rate of Money Supply = Rate of Inflation+Growth Rate of Real Gross Domestic Product
Real Gross Domestic Product Per Capita
Go Real Gross Domestic Product Per Capita = Real Gross Domestic Product/Total Population
Expenditure Multiplier
Go Expenditure Multiplier = Initial Consumer Price Index/Change in Government Spending
Gross National Disposable Income
Go Gross National Disposable Income = Net National Disposable Income+Depreciation
Velocity of Money
Go Velocity of Money = Nominal Gross Domestic Product/Money Supply
Real Wage
Go Real Wage = Nominal Wage/Consumer Price Index
Simple Deposit Multiplier
Go Simple Deposit Multiplier = 1/Required Reserve Ratio

Net Domestic Product at Factor Cost Formula

Net Domestic Product at Factor Cost = Net Domestic Product at Market Price-Net Indirect Taxes
NDPfc = NDPmp-NIT

What do you mean by Net Domestic Product at Factor Cost ?

Net Domestic Product at Factor Cost is the income earned by the factors in the form of wages, profits, rent, interest, etc, it only counts the value of the factors of production used to produce them, excluding indirect taxes and subsidies. Factor costs represent the total payments made to the factors of production—labour, capital and land—for their contribution to the production process. These payments include wages, interest, rent and profits. NDP at FC is calculated by subtracting indirect taxes and adding subsidies from NDP at Market Price (NDP at MP). This adjustment reflects the difference between the prices paid by consumers for goods and services (market prices) and the revenue received by producers from the sale of those goods and services (factor costs).NDP at FC provides a measure of the total income earned by factors of production within the domestic economy, excluding the impact of taxes and subsidies on the final prices of goods and services.

How to Calculate Net Domestic Product at Factor Cost?

Net Domestic Product at Factor Cost calculator uses Net Domestic Product at Factor Cost = Net Domestic Product at Market Price-Net Indirect Taxes to calculate the Net Domestic Product at Factor Cost, Net Domestic Product at Factor Cost is a measure of the total income earned by factors of production within the domestic economy, excluding the impact of taxes and subsidies on the final prices of goods and services excluding taxes. Net Domestic Product at Factor Cost is denoted by NDPfc symbol.

How to calculate Net Domestic Product at Factor Cost using this online calculator? To use this online calculator for Net Domestic Product at Factor Cost, enter Net Domestic Product at Market Price (NDPmp) & Net Indirect Taxes (NIT) and hit the calculate button. Here is how the Net Domestic Product at Factor Cost calculation can be explained with given input values -> 20500 = 23500-3000.

FAQ

What is Net Domestic Product at Factor Cost?
Net Domestic Product at Factor Cost is a measure of the total income earned by factors of production within the domestic economy, excluding the impact of taxes and subsidies on the final prices of goods and services excluding taxes and is represented as NDPfc = NDPmp-NIT or Net Domestic Product at Factor Cost = Net Domestic Product at Market Price-Net Indirect Taxes. Net Domestic Product at Market Price is an economic indicator that measures the value of all goods and services produced within a country's borders during a particular time period, minus depreciation & Net Indirect Taxes refers to the difference between indirect taxes collected by the government on the production and sale of goods and services and subsidies provided by the government to producers.
How to calculate Net Domestic Product at Factor Cost?
Net Domestic Product at Factor Cost is a measure of the total income earned by factors of production within the domestic economy, excluding the impact of taxes and subsidies on the final prices of goods and services excluding taxes is calculated using Net Domestic Product at Factor Cost = Net Domestic Product at Market Price-Net Indirect Taxes. To calculate Net Domestic Product at Factor Cost, you need Net Domestic Product at Market Price (NDPmp) & Net Indirect Taxes (NIT). With our tool, you need to enter the respective value for Net Domestic Product at Market Price & Net Indirect Taxes and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
Let Others Know
Facebook
Twitter
Reddit
LinkedIn
Email
WhatsApp
Copied!