From the following data calculate (i) Gross Domestic Product at Market Price and (ii) Factor Income from Abroad Gross National Product at Factor Cost ₹ 6,150
From the following data calculate (i) Gross Domestic Product at Market Price and (ii) Factor Income from Abroad
| Particulars | ₹ (in Crores) |
| (i) Gross National Product at Factor Cost | 6,150 |
| (ii) Net Exports | (-) 50 |
| (iii) Compensation of Employees | 3,000 |
| (iv) Rent | 800 |
| (v) Interest | 900 |
| (vi) Profits | 1,300 |
| (vii) Net Indirect taxes | 300 |
| (viii) Net Domestic Capital Formation | 800 |
| (ix) Gross Fixed Capital Formation | 850 |
| (x) Change in Stock | 50 |
| (xi) Dividend | 300 |
| (xii) Factor Income to Abroad | 80 |
Ans:- Gross Domestic Product at Market Pricef – ₹ 6,400 Crores, Factor Income from Abroad – ₹ 130 Crores
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 = ₹ 3,000 + ₹ 800 + ₹ 900 + ₹ 1,300
NDP at FC = ₹ 6,000 Crores
Gross Domestic Product at Market Price (GDP at MP) = NDP at FC + Depreciation [(Gross Fixed Capital Formation + Change in Stock) – Net Domestic Capital Formation) + Net Indirect Taxes
Gross Domestic Product at Market Price (GDP at MP) = ₹ 6,000 + [(₹ 850 + ₹ 50) – ₹ 800] + ₹ 300
Gross Domestic Product at Market Price (GDP at MP) = ₹ 6,400 Crores
Calculation of Factor Income from Abroad
GNP at MP = GNP at FC + Net Indirect Taxes
GNP at MP = ₹ 6,150 + ₹ 300
GNP at MP = ₹ 6,450 Crores
GNP at MP = GDP at MP + (Factor Income from Abroad – Factor Income to Abroad)
₹ 6,450 = ₹ 6,400 + (Factor Income from Abroad – ₹ 80)
Factor Income from Abroad = ₹ 6,450 – ₹ 6,400 + ₹ 80
Factor Income from Abroad = ₹ 130 Crores
Anurag Pathak Changed status to publish November 21, 2023
