Calculate Gross National Product at Factor Cost by (i) Income Method, and (ii) Expenditure Method, from the following data Private Final Consumption Expenditure ₹ 800
Calculate Gross National Product at Factor Cost by (i) Income Method, and (ii) Expenditure Method, from the following data.
| Particulars | ₹ in Crores |
| (i) Private Final Consumption Expenditure | 800 |
| (ii) Government Final Consumption Expenditure | 300 |
| (iii) Compensation of Employees | 600 |
| (iv) Net Imports | 50 |
| (v) Gross Domestic Capital Formation | 150 |
| (vi) Consumption of Fixed Capital | 20 |
| (vii) Net Indirect Taxes | 100 |
| (viii) Net Factor Income from Abroad | (-) 70 |
| (ix) Dividend | 150 |
| (x) Rent | 120 |
| (xi) Interest | 80 |
| (xii) Undistributed Profits | 80 |
| (xiii) Social Security Contribution by Employers | 60 |
| (xiv) Corporate Tax | 50 |
Ans:- Gross National Product at Factor Cost (Income Method) – ₹ 1,030 Crores, Gross National Product at Factor Cost (Expenditure Method) – ₹ 1,030 Crores
Anurag Pathak Changed status to publish December 22, 2023
Solution:-
Calculation of Gross National Product at Factor Cost by Income Method
NDP at FC = Compensation of Employees + Rent + Interest + Profits (Corporate Tax + dividend + Undistributed Profits)
NDP at FC = ₹ 600 + ₹ 120 + ₹ 80 + (₹ 50 + ₹ 150 + ₹ 80)
NDP at FC = ₹ 1080 Crores
GNP at FC = NDP at FC + Consumption of Fixed Capital + Net Factor Income from Abroad
GNP at FC = ₹ 1080 + ₹ 20 + ₹ (-) 70
GNP at FC = ₹ 1,030 Crores
Calculation of Gross National Product at Factor Cost by Expenditure Method
GDP at MP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Gross Domestic Capital Formation – Net Imports
GDP at MP = ₹ 800 + ₹ 300 + ₹ 150 – ₹ 50
GDP at MP = ₹ 1,200 Crores
GNP at FC = GDP at MP + Net Fator Income from Abroad – Net Indirect Taxes
GNP at FC = ₹ 1,200 + ₹ (-) 70 – ₹ 100
GNP at FC = ₹ 1,030 Crores
Anurag Pathak Changed status to publish November 22, 2023
