Advertisement Remove all ads

Find Gross National Product at Market Price and Private Income - Economics

Find Gross National Product at Market Price and Private Income:

    Rs. in crore
1 Private final consumption expenditure 800
2 Net Current transaction to abroad 20
3 Net factor income to abroad (-)10
4 Government final consumption expenditure 300
5 Net indirect tax 150
6 Net domestic capital formation 200
7 Current transfer to government 40
8 Depreciation 100
9 Net imports 30
10 Income accruing to government 90
11 National debt interest 50
Advertisement Remove all ads

Solution

GDPMP = Private final consumption expenditure + Government final consumption expenditure + (Net domestic capital formation + depreciation) − Net imports

           = 800 + 300 + (200 + 100) − 30 = 1.370

           = Rs 1.370 crore

GNPMP = GDPMP − Net factor income to abroad

           = 1,370 −(−10)

           = Rs 1,380 crore

Private Income = GDPMP − Net indirect taxes − Depreciation − Income accruing to government − Net factor income to abroad + Current transfers from Government − Net current transfers to abroad + National debt interest

                      = 1.370 − 150 − 100 − 90 −(−10) + 40 − 20 + 50

                      = Rs 1,110 crore

Concept: Aggregates Related to National Income - Gross National Product (GNP)
  Is there an error in this question or solution?
Advertisement Remove all ads
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×