Question

Find out (i) Gross National Product at Market Price and (ii) Net Current Transfers from Abroad:

S. No.	Items	(Rs Crore)
(i)	Private final consumption expenditure	1000
(ii)	Depreciation	100
(iii)	Net national disposable income	1500
(iv)	Closing stock	20
(v)	Government final consumption expenditure	300
(vi)	Net Indirect tax	50
(vii)	Opening stock	20
(viii)	Net domestic fixed capital formation	110
(ix)	Net exports	15
(x)	Net factor income to abroad	(–) 10

 

Answer 1

GNP_MP= Private Final Consumption Expenditure + Government Final Consumption Expenditure + Net Exports + Net Domestic Fixed Capital Formation + Depreciation − Net Factor Income to Abroad

= 1000 + 300 + 15 + 110 + 100 − (−) 10

= Rs 1535 crore

Net Current Transfers from Abroad = National Disposable Income − National Income − Net Indirect Taxes

National Income (NNP_FC) = GNP_MP− Depreciation − Net Indirect Taxes

= 1535 − 100 − 50

= Rs 1385 crore

Thus, Net Current Transfers from Abroad = 1500 − 1385 − 50

= Rs 65 crore