Question

Consider the following information for a country:

Hint:

Remember: \[ NNP = GDP + NFIA - \text{Depreciation} \] where \(NFIA\) is the difference between factor income received from abroad and factor income paid abroad.

Answer 1

Correct Answer: 6680

Step 1: Recall the chain from GDP to NNP.
Net National Product is
\[ NNP=GDP+NFIA-\text{Depreciation} \]
where NFIA is the net factor income from abroad.

Step 2: Find NFIA.
It is receipts minus payments, $200-220=-20$. The minus sign means we pay more abroad than we receive.

Step 3: Find GNP.
\[ GNP=GDP+NFIA=7500+(-20)=7480 \]

Step 4: Take off depreciation.
\[ NNP=7480-800=6680 \]

Step 5: Conclude.
\[ \boxed{6680} \]