Calculate the Net National Product at market price : [3]( ₹ in Crores)(i) Mixed income of self-employed 8,000(ii) Depreciation 200(iii) Profit 1,000(iv) Rent 600(v) Interest 700(vi) Compensation of employees 3,000(vii) Net indirect taxes 500(viii) Net factor income to abroad 60(ix) Net exports (-) 50
Question
Calculate the Net National Product at market price : [3]( ₹ in Crores)(i) Mixed income of self-employed 8,000(ii) Depreciation 200(iii) Profit 1,000(iv) Rent 600(v) Interest 700(vi) Compensation of employees 3,000(vii) Net indirect taxes 500(viii) Net factor income to abroad 60(ix) Net exports (-) 50
Solution
To calculate the Net National Product at market price, we need to follow these steps:
Step 1: Add up all the components of income:
- Mixed income of self-employed: ₹8,000
- Depreciation: ₹200
- Profit: ₹1,000
- Rent: ₹600
- Interest: ₹700
- Compensation of employees: ₹3,000
Total income = ₹8,000 + ₹200 + ₹1,000 + ₹600 + ₹700 + ₹3,000 = ₹13,500
Step 2: Add net indirect taxes and net factor income to abroad:
- Net indirect taxes: ₹500
- Net factor income to abroad: ₹60
Total = ₹13,500 + ₹500 + ₹60 = ₹14,060
Step 3: Subtract net exports:
- Net exports: -₹50
Net National Product at market price = ₹14,060 - ₹50 = ₹14,010 (in Crores)
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