Question

Find out (a) Gross Domestic Product at Market Price. and (b) Factor Income to Abroad: 6

Items
(₹ in crore)

(i) Factor income from abroad
40

(ii) Net indirect tax
140

(iii) Private final consumption expenditure
770

(iv) Government final consumption expenditure
270

(v) Net domestic fixed capital formation
220

(vi) Net imports
(-)60

(vii) Gross national product at factor cost
1,260

(viii) Depreciation
70

(ix) Change in stock
30
​

Answer 1

Answer:

a) Gross Domestic Product at Market Price

G

D

P

M

P

= Compensation of employees + Rent + Interest+ Profits+ Gross fixed capital formation + Change in stock - Net domestic capital formation + Net indirect taxes

= (iii) + (vi)+ (vii)+ (i)+ (xi)+(xii) - (x) + (ix)

=1,500+300+400+500+700+50-650+250

=1,500+300+400+500+100+250 = Rs 3,050 (in '000 crores)

(b)

G

N

P

M

P

=

G

N

P

F

C

+ Net indirect taxes

= 2,800+250 = 3,050 (in '000 crores)

Net factor income earned from abroad =

G

N

P

M

P

-

G

N

P

M

P

= 3,050 -3050= 0

∴

Factor income from abroad - Factor income to abroad = 0.

Or, Factor income from abroad -120 = 0

∴

Factor income from abroad = 120 (in '000 crores)