Calculate (a) Net National Product at market price, and (b) Gross Domestic Product at factorcost: (6)S. No. Particulars Amount (in ₹ crores)(i) Rent and Interest 6,000(ii) Wages and Salaries 1,800(iii) Undistributed profit 400(iv) Net Indirect taxes 100(v) Subsidies 20(vi) Corporation tax 120(vii) Net factor income to abroad 70(viii) Dividends 80(ix) Consumption of fixed capital 50(x) Social Security contribution by 200employers200(xi) Mixed income 1,000
Question
Calculate (a) Net National Product at market price, and (b) Gross Domestic Product at factorcost: (6)S. No. Particulars Amount (in ₹ crores)(i) Rent and Interest 6,000(ii) Wages and Salaries 1,800(iii) Undistributed profit 400(iv) Net Indirect taxes 100(v) Subsidies 20(vi) Corporation tax 120(vii) Net factor income to abroad 70(viii) Dividends 80(ix) Consumption of fixed capital 50(x) Social Security contribution by 200employers200(xi) Mixed income 1,000
Solution
Sure, let's calculate the Net National Product (NNP) at market price and the Gross Domestic Product (GDP) at factor cost.
(a) Net National Product at market price:
NNP at market price is calculated as the sum of Rent, Interest, Wages, Salaries, Undistributed profit, Corporation tax, Net factor income to abroad, Dividends, and Mixed income, minus Consumption of fixed capital.
So, NNP at market price = Rent + Interest + Wages + Salaries + Undistributed profit + Corporation tax + Net factor income to abroad + Dividends + Mixed income - Consumption of fixed capital
= 6000 (Rent and Interest) + 1800 (Wages and Salaries) + 400 (Undistributed profit) + 120 (Corporation tax) + 70 (Net factor income to abroad) + 80 (Dividends) + 1000 (Mixed income) - 50 (Consumption of fixed capital)
= 9420 crores
(b) Gross Domestic Product at factor cost:
GDP at factor cost is calculated as the sum of Rent, Interest, Wages, Salaries, Undistributed profit, Corporation tax, Dividends, and Mixed income, plus Social Security contribution by employers, minus Net Indirect taxes and Subsidies.
So, GDP at factor cost = Rent + Interest + Wages + Salaries + Undistributed profit + Corporation tax + Dividends + Mixed income + Social Security contribution by employers - Net Indirect taxes - Subsidies
= 6000 (Rent and Interest) +
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