# 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