Calculate Net National Product at Factor Cost Government final consumption expenditure ₹ 500
Calculate Net National Product at Factor Cost:
| Particulars | ₹ in Crores |
| (i) Government final consumption expenditure | 500 |
| (ii) Mixed Income | 1,500 |
| (iii) Net indirect taxes | 100 |
| (iv) Net exports | 60 |
| (v) Change in Stock | (-) 50 |
| (vi) Net factor income to abroad | 70 |
| (vii) Net Domestic fixed capital formation | 250 |
| (viii) Private final consumption expenditure | 2,000 |
| (ix) Consumption of fixed Capital | 30 |
Anurag Pathak Changed status to publish December 21, 2023
Solution:-
Calculation of Gross Domestic Product at Market Price
GDP at MP = Private Final Consumption expenditure + Government final consumption expenditure + Gross domestic capital formation (Net domestic fixed capital formation + Consumption of fixed capital + change in stock) + Net exports
GDP at MP = ₹ 2,000 + ₹ 500 + (₹ 250 + ₹ 30 + ₹ (-) 50) + 60
GDP at MP = ₹ 2790
Calculation of Net National Product at Factor Cost
NNP at FC = GDP at MP – Consumption of fixed Capital – Net factor income to abroad – Net indirect taxes
NNP at FC = ₹ 2790 – 30 – 70 – 100
NNP at FC = ₹ 2590 Crore
Anurag Pathak Changed status to publish November 7, 2023
