Question

3. Calculate Consumption of Fixed Capital
Particulars
(i) NNP at FC 4000
(ii) GDP at MP 5000
(iii) Net Indirect Tax 300
(iv) Net Factor income from abroad 200
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Answer 1

Explanation:

consumption of fixed capital is also called depreciation

depreciation = GDPmp - NNPfc + NFIA + NIT

Depreciation = 5000 - 4000 + 200 + 300

Depreciation = 1500