Question

Calculate 'Net Domestic Product at Market Price' and 'Gross National Disposable Income':

		(Rs crores)
1	Private final consumption expenditure	400
2	Opening stock	10
3	Consumption of fixed capital	25
4	Imports	15
5	Government final consumption expenditure	90
6	Net current transfers to rest of the world	5
7	Gross domestic fixed capital formation	80
8	Closing stock	20
9	Exports	10
10	Net factor income to abroad	(-)5

 

Answer 1

Net Domestic Product at Market Price = Private final consumption expenditure + Government final consumption expenditure + Gross domestic fixed capital formation + change in stock + Net exports - depreciation

= 400 + 90 + 80 + (20 − 10) + (10 − 15) − 25

= Rs 550 crore

Gross National Disposable Income = Net domestic product at market price − Net factor
income to abroad + Consumption of fixed capital − Net current transfers to rest of the world

= 550 − (−5) + 25 − 5 

= Rs 575 crore