# Calculate (a) Gross Domestic Product at Market Price, and (b) Factor income from abroad from the following data Profits ₹ 500

Calculate (a) Gross Domestic Product at Price, and (b) 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: (a) ₹ 3,050 crores; (b) ₹ 120 crores

**Solution:-**

**Calculation of Gross Domestic Product at Market Price**

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

NDP at FC = ₹ 1,500 + 0 + ₹ 300 + ₹ 400 + ₹ 500

NDP at FC = ₹ 2700

Consumption of Fixed Capital = Gross Domestic Capital Formation (Gross fixed capital formation + Change in stock) – Net domestic capital formation

Consumption of Fixed Capital = ₹ 700 + ₹ 50 – ₹ 650

Consumption of Fixed Capital = ₹ 100

GDP at MP = NDP at FC + Consumption of Fixed Capital + Net Indirect Taxes

GDP at MP = ₹ 2700 + ₹ 100 + ₹ 250

**GDP at MP = ₹ 3050 Crores**

**Calculation of Factor Income from Abroad**

GDP at MP = GNP at FC + Net Factor income from abroad (Factor income from abroad – Factor income to abroad) + Net indirect taxes

₹ 3050 = ₹ 2,800 + (Factor income from abroad – ₹ 120) + ₹ 250

Factor income from abroad = ₹ 3050 – ₹ 2,800 – ₹ 250 + ₹ 120

**Factor income from abroad = ₹ 120 Crore**