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Solution:- (a) Domestic Income (NDP at FC) = GDP at MP – Consumption of Fixed Capital – (Indirect taxes – Subsidies) Domestic Income (NDP at FC) = (i) – (iv) – [(ii) – (vi)] Domestic Income (NDP at FC) =…

Solution:- Domestic Income (NDP at FC) = GNP at FC – Replacement of fixed capital – (Factor income from abroad – Factor income to abroad) Domestic Income (NDP at FC) = (i) – (v) – [(iii) – (iv)] Domestic Income…

Solution:- GDP at MP = National Income + Consumption of fixed Capital – Net Factor income from abr0ad (Factor income from abroad – Factor income to abroad) + Net Indirect taxes (Indirect taxes – Subsidies) GDP at MP = (i)…

Solution:- NNP at FC = GDP at MP – Consumption of fixed Capital + Net Factor income from abroad – Net indirect taxes (Indirect taxes – Subsidies) NNP at FC = (i) – (iv) + (iii) – [(ii) – (v)…

Solution:- Domestic Income (NDP at FC) = Gross National Product at Market Price – Depreciation – Net Factor income from abroad – (Indirect tax – Subsidies) Domestic Income (NDP at FC) = (i) – (iv) – (v) – [(ii) –…

Solution:- GNP at FC = NDP at MP + Depreciation + Net Factor income from abroad – Net Indirect tax (Indirect tax – Subsidies) GNP at FC = (ii) + (iii) + (ii) – (v) + (iv) GNP at FC…

GDP is often considered as in index of welfare of the people. Welfare means sense of material well-being among the people. It depends on greater per head availability of goods and services. So, higher GDP is generally taken as greater…

GDP does not take into account those transactions that are not expressed in monetary terms. It is a major limitation of GDP as an index of welfare of a country. As there are many transactions that can not be measured…

Answer (a) Profits earned by brances of a country’s bank in other countries: It will not be included in the domestic income as the banks are located outside the domestic territory of the country. (b) Gifts are given by an…

National Income at constant Prices: It is the money value of final goods and services produced by normal residents of a country in a year, measured at base year price. Base year is a normal year which is free from…