22. Calculate from the data given below: [6](a) Net Domestic Product at factor cost by the production method.(b) Net National Product at factor cost by the expenditure method.( ₹ in crore)(i) Purchase of raw materials and services from other firms 250(ii) Value of output 770(iii) Indirect taxes 75(iv) Subsidies 15(v) Consumption of fixed capital 10(vi) Net factor income from abroad (-) 5(vii) Opening stock 15(vi) Closing stock 5(vii) Gross domestic capital formation 40(viii) Private final consumption expenditure 455(ix) Government final consumption 25(x) Net exports 10Q 23. Calculate (a) Gross domestic product at market price, and (b) Factor income from abroad from thefollowing data: [6]( ₹ in crores)(i Profits 500
Question
- Calculate from the data given below: 6 Net Domestic Product at factor cost by the production method.(b) Net National Product at factor cost by the expenditure method.( ₹ in crore)(i) Purchase of raw materials and services from other firms 250(ii) Value of output 770(iii) Indirect taxes 75(iv) Subsidies 15(v) Consumption of fixed capital 10(vi) Net factor income from abroad (-) 5(vii) Opening stock 15(vi) Closing stock 5(vii) Gross domestic capital formation 40(viii) Private final consumption expenditure 455(ix) Government final consumption 25(x) Net exports 10Q 23. Calculate (a) Gross domestic product at market price, and (b) Factor income from abroad from thefollowing data: [6]( ₹ in crores)(i Profits 500
Solution
(a) To calculate the Net Domestic Product at factor cost by the production method, we need to subtract the consumption of fixed capital from the value of output.
Net Domestic Product at factor cost = Value of output - Consumption of fixed capital Net Domestic Product at factor cost = 770 - 10 Net Domestic Product at factor cost = 760 crore
(b) To calculate the Net National Product at factor cost by the expenditure method, we need to subtract the consumption of fixed capital, indirect taxes, and add subsidies from the Gross Domestic Product at market price.
Net National Product at factor cost = Gross Domestic Product at market price - Consumption of fixed capital - Indirect taxes + Subsidies Net National Product at factor cost = 770 - 10 - 75 + 15 Net National Product at factor cost = 700 crore
(a) To calculate the Gross Domestic Product at market price, we need to add the consumption of fixed capital, indirect taxes, and subtract subsidies from the Net Domestic Product at factor cost.
Gross Domestic Product at market price = Net Domestic Product at factor cost + Consumption of fixed capital + Indirect taxes - Subsidies Gross Domestic Product at market price = 760 + 10 + 75 - 15 Gross Domestic Product at market price = 830 crore
(b) To calculate the Factor Income from abroad, we need to subtract the Net Factor Income from abroad from the Gross Domestic Product at market price.
Factor Income from abroad = Gross Domestic Product at market price - Net Factor Income from abroad Factor Income from abroad = 830 - (-5) Factor Income from abroad = 835 crore
(i) Profits 500 crore
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