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Calculation (A) Net National Product at Market Price, and (B) Gross Domestic Product at Factor Cost: - CBSE (Arts) Class 12 - Economics

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Question

Calculation (a) Net National Product at market price, and (b) Gross Domestic Product at factor cost:

    (Rs in crores)
1 Rent and Interest 6000
2 Wages and Salaries 1800
3 Undistributed Profit 400
4 Net indirect taxes 100
5 Subsidies 20
6 Corporation tax 120
7 Net factor income to abroad 70
8 Dividends 80
9 Consumption of fixed capital 50
10 Social security contribution by employers 200
11 Mixed income 1000

 

Solution

NDPFC = Wages and salaries + SSC by employer + Rent and interest + Dividend + Corporation tax + undistributed profit + mixed income
NDPFC = 1800 + 200 + 6000 + 80 + 120 + 400 + 1000
NDPFC = Rs 9600 Crore

NNPMP = NDPFC + NFIA + NIT
NNPMP = 9600 + (-70) + 100
NNPMP = 9630

GDPFC = NDPFC + Consumption of fixed capital
GDPFC = 9600+ 50
GDPFC = 9650

  Is there an error in this question or solution?
Solution Calculation (A) Net National Product at Market Price, and (B) Gross Domestic Product at Factor Cost: Concept: Aggregates Related to National Income - Net National Product (NNP).
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