Question

3. Calculate 'Net Domestic Product at Factor Cost':
Items
in crore
15
800
(7) 20
100
10
(i) Net current transfers to abroad
(ii) Private final consumption expenditure
(iii) Net imports
(iv) Net domestic capital formation
(v) Net factor income to abroad
(vi) Depreciation
(vii) Change in stocks
(viii) Net indirect tax
(ix) Government final consumption expenditure
(x) Exports
50
17
120
200
30
​

Answer 1

Explanation:

The income approach defines GDP in terms of the income derived or created from producing final goods and services.

Net Domestic Income at factor cost =

Labour Income +

Enterprises before taxes +

Interest and Investment Income +

Unincorporated Businesses +