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

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

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**