Calculate (i) Gross Domestic Product at Market Price and (ii) Factor Income to Abroad from the following data Compensation of Employees ₹ 1,000
Calculate (i) Gross Domestic Product at Market Price and (ii) Factor Income to Abroad from the following data.
| Particulars | ₹ in Crores |
| (i) Compensation of Employees | 1,000 |
| (ii) Net Exports | (-) 50 |
| (iii) Profits | 400 |
| (iv) Interest | 250 |
| (v) Rent | 150 |
| (vi) Gross National Product at Factor Cost | 1,850 |
| (vii) Gross Domestic Capital Formation | 220 |
| (viii) Net Fixed Capital Formation | 150 |
| (ix) Change in Stock | 20 |
| (x) Factor Income from Abroad | 30 |
| (xi) Net Indirect Taxes | 100 |
Ans:- Gross Domestic Product at Market Price – ₹ 50 Crores, Factor Income to Abroad – ₹ 30 Crore
Anurag Pathak Changed status to publish December 22, 2023
Solution;-
Calculation of Gross Domestic Product at Market Price
NDP at FC = Compensation of Employees + Rent + Interest + Profits
NDP at FC = ₹ 1,000 + ₹ 150 + ₹ 250 + ₹ 400
NDP at FC = ₹ 1,800 Crores
Gross Domestic Product at Market Price (GDP at MP) = ₹ NDP at FC + Depreciation [Gross Domestic Capital Formation – (Net Fixed Capital Formation + Change in Stock) + Net Indirect Taxes
Gross Domestic Product at Market Price (GDP at MP) = ₹ 1,800 + [₹ 220 – (₹ 150 + ₹ 20)] + ₹ 100
Gross Domestic Product at Market Price (GDP at MP) = ₹ 1,950 Crores
Calculation of Factor Income to Abroad
GNP at MP = GNP at FC + Net Indirect Taxes
GNP at MP = ₹ 1,850 + ₹ 100
GNP at MP = ₹ 1,950 Crores
GNP at MP = GDP at MP + (Factor Income from Abroad – Factor Income to Abroad)
₹ 1,950 = ₹ ₹ 1950 + (₹ 30 – Factor Income to Abroad)
Factor Income to Abroad = ₹ 30 Crores
Anurag Pathak Changed status to publish November 21, 2023
