From the following data, Calculate (i) Gross Domestic Product at Factor Cost and (ii) Factor Income to Abroad Compensation of Employees ₹ 800

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Anurag Pathak24.20K November 21, 2023 0 Comments

From the following data, Calculate (i) Gross Domestic Product at Factor Cost and (ii) Factor Income to Abroad

Particulars	₹ in Crores
(i) Compensation of Employees	800
(ii) Profits	200
(iii) Dividends	50
(iv) Gross National Product at Market Price	1,400
(v) Rent	150
(vi) Interest	100
(vii) Gross Domestic Capital Formation	300
(viii) Net Fixed Capital Formation	200
(ix) Change in Stock	50
(x) Factor Income from Abroad	60
(xi) Net Indirect Taxes	120

Ans – Gross Domestic Product at Factor Cost – ₹ 1,300 Crores, Factor Income to Abroad – ₹ 80 Crores

score 0 · Answer 1 · 2023-11-21T06:00:22+00:00

Solution:-

Calculation of Gross Domestic Product at Factor Cost

NDP at FC = Compensation of Employees + Rent + Interest + Profits

NDP at FC = ₹ 800 + ₹ 150 + ₹ 100 + ₹ 200

NDP at FC = ₹ 1,250 Crores

Gross Domestic Product at Factor Cost (GDP at FC) = NDP at FC + [Gross Domestic Capital Formation – (Net Fixed Capital Formation + Change in Stock)]

Gross Domestic Product at Factor Cost (GDP at FC) = ₹ 1,250 + [₹ 300 – (₹ 200 + ₹ 50)

Gross Domestic Product at Factor Cost (GDP at FC) = ₹ 1,300 Crores

Calculation of Factor Income to Abroad

GNP at FC = GNP at MP – Net Indirect Taxes

GNP at FC = ₹ 1,400 – ₹ 120

GNP at FC = ₹ 1,280 Crores

GNP at FC = GDP at FC + Net Factor Income from Abroad ( Factor Income from Abroad – Factor Income to Abroad)

₹ 1,280 = ₹ 1,300 + (₹ 60 – Factor Income to Abroad)

Factor Income to Abroad = ₹ 1,300 + ₹ 60 – ₹ 1,280

Factor Income to Abroad = ₹ 80 Crores