Calculate (i) Gross Domestic Product at Market Price and (ii) Factor Income from Abroad. From the following data Profits ₹ 500

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Anurag Pathak24.20K November 22, 2023 0 Comments

Calculate (i) Gross Domestic Product at Market Price and (ii) Factor Income from Abroad. From the following data.

Particulars	₹ in Crores
(i) Profits	500
(ii) Exports	40
(iii) Compensation of Employees	1,500
(iv) Gross National Product at Factor Cost	2,800
(v) Net Current transfers from Rest of the world	90
(vi) Rent	300
(vii) Interest	400
(viii) Factor income to abroad	120
(ix) Net Indirect taxes	250
(x) Net Domestic Capital Formation	650
(xi) Gross Fixed Capital Formation	700
(xii) Change in Stock	50

Ans:- Gross Domestic Product at Market Price – ₹ 3050 Crore, Factor income from Abroad – ₹ 120 Crore

score 0 · Answer 1 · 2023-11-22T03:41:43+00:00

Solution:-

Calculation of Gross Domestic Product at Market Price

NDP at FC = Compensation of Employees + Rent + Interest + Profits

NDP at FC = ₹ 1,500 + ₹ 300 + ₹ 400 + ₹ 500

NDP at FC = ₹ 2,700 Crores

GDP at MP = NDP at FC + Depreciation [(Gross Fixed Capital Formation + change in stock) – Net Domestic Capital Formation] + Net Indirect taxes

GDP at MP = ₹ 2,700 + [(₹ 700 + ₹ 50) – ₹ 650] + ₹ 250

GDP at MP = ₹ 3050 Crores

Calculation of Factor Income from Abroad

GNP at MP = GNP at FC + Net indirect taxes

GNP at MP = ₹ 2,800 + ₹ 250

GNP at MP = ₹ 3050 Crores

GNP at MP = GDP at MP + (Factor income from Abroad – Factor income to abroad)

₹ 3050 = ₹ 3050 + (Factor income from Abroad – ₹ 120)

Factor income from Abroad = ₹ 3050 – ₹ 3050 + ₹ 120

Factor Income from Abroad = ₹ 120 Crores