Calculate Net Domestic Product at Factor Cost (NDP at FC) from the following Net factor income to abroad ₹ 10
Calculate Net Domestic Product at Factor Cost (NDP at FC) from the following:
| Particulars | ₹ in Arab |
| (i) Net factor income to abroad | 10 |
| (ii) Government final consumption expenditure | 100 |
| (iii) Net indirect tax | 80 |
| (iv) Private final consumption expenditure | 300 |
| (v) Consumption of fixed capital | 20 |
| (vi) Gross Domestic Fixed Capital Formation | 50 |
| (vii) Net imports | (-) 10 |
| (viii) Closing Stock | 25 |
| (ix) Operating Stock | 25 |
Ans:- NDP at FC = ₹ 360 Arab
Anurag Pathak Changed status to publish December 21, 2023
Solution:-
Calculation of Net Domestic Product at Factor Cost (NDP at FC
GDP at MP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Gross Domestic Fixed Capital Formation + (Closing Stock – Opening Stock) – Net Imports
GDP at MP = ₹ 300 + ₹ 100 + ₹ 50 + (₹ 25 – ₹ 25) – (- 10)
GDP at MP = ₹ 460
NDP at FC = GDP at MP – Consumption of fixed capital – Net indirect tax
NDP at FC = ₹ 460 – ₹ 20 – ₹ 80
NDP at FC = ₹ 360 Arab
Anurag Pathak Changed status to publish November 7, 2023
