Distinguish between: National income at market prices and national income at factor cost

Distinguish between:

National income at market prices and national income at factor cost

Basis
National income at market price (NNPMP)
National income at factor cost (NNPFC)
1. Definition
It refers to the total market value of all final goods and services produced by the normal residents of a country both within the domestic territory as well as outside the country.
It refers to the aggregate of all factor incomes earned by those factors of production that are normal residents of a country both within the domestic territory as well as abroad.
2. Indirect taxes and subsidies
It takes into account the impact of indirect taxes and subsidies.
It does not take into consideration the impact of subsidies and indirect taxes.

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