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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…
Solution:- Real Gross Domestic Product: It refers to money value of final goods and services produced in a country in a year, measured at price of base year. It is a better tool to measure the economic growth as it…
Solution:- Calculation of Real GDP for 2015 – 16 Real GDP = Nominal GDP/GDP Deflator × 100 Real GDP = 8.4/140 × 100 = 6% Calculation of Real GDP for 2016 – 17 Real GDP = Nominal GDP/GDP Deflator ×…
Solution:- Calculation of Value of Output by Firm B Value of Output by Firm B = Goods sold to Firm C + Goods sold to Firm D + Goods exported + Goods sold to government Value of Output by Firm…
Solution:- Calculation of Value added by Firm A Value of output by Firm A = Sales by Firm A + (Closing Stock of firm A – Opening Stock of firm A) Value of Output by Firm A = ₹ 100…