# From the following data, calculate (i) Gross Domestic Product at Factor Cost and (ii) Factor Income to Abroad Gross Domestic Capital Formation ₹ 600

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

Particulars | ₹ (in Crores) |

(i) Gross Domestic Capital Formation | 600 |

(ii) Interest | 200 |

(iii) Gross National Product at Market Price | 2,800 |

(iv) Rent | 300 |

(v) Compensation of Employees | 1,600 |

(vi) Profits | 400 |

(vii) Dividends | 150 |

(viii) Factor Income From Abroad | 50 |

(ix) Change in Stock | 100 |

(x) Net Indirect Taxes | 240 |

(xi) Net Fixed Capital Formation | 400 |

(xii) Net Exports | (-) 30 |

Ans:- GDP at FC = ₹ 2,600 Crores, Net Factor Income at Abroad = ₹ 90 Crores

Solution:-

**Calculation of Gross Domestic Product at Factor Cost**

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

NDP at FC = (v) + (iv) + (ii) + (vi)

NDP at FC = ₹ 1,600 + ₹ 300 + ₹ 200 + ₹ 400

NDP at FC = ₹ 2,500 Crores

GDP at FC = NDP at FC + Depreciation [Gross Domestic Capital Formation – (Net Fixed Capital Formation + Change in Stocks)]

GDP at FC = ₹ 2,500 + [(i) – ((xi) + (ix))]

GDP at FC = ₹ 2,500 + [₹ 600 – (₹ 400 + ₹ 100)]

**GDP at FC = ₹ 2,600 Crores**

**Calculation of Factor Income to Abroad**

GNP at FC = GNP at MP – Net Indirect Taxes

GNP at FC = (iii) – (x)

GNP at FC = ₹ 2,800 – ₹ 240

GNP at FC = ₹ 2,560 Crores

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

₹50 – Factor Income to Abroad = ₹ 2,560 – ₹ 2,600

Factor Income to Abroad = ₹ 2,600 – ₹ 2,560 + ₹ 50

**Factor Income to Abroad = ₹ 90 Crores**