Suppose the GDP at Market price of a country in particular year was ₹2100 crores; Net factor income from abroad was ₹200 crores. The value of Net indirect taxes was ₹100 crores and National income was 1900 crores. The aggregate value of depreciation will be ________.
Answer & explanation
Correct answer: option 2
The correct answer is option (2) : ₹300 crores
Given:
- GDP at Market Price (GDP MP) = ₹2100 crores
- Net Factor Income from Abroad (NFIA) = ₹200 crores
- Net Indirect Taxes (NIT) = ₹100 crores
- National Income (NI) or NNP (FC) = ₹1900 crores
NNP (MP)= GNP (MP)- Depreciation -----------(1)
Step 1: Find NNP (MP) from National Income
NNP (FC) = NNP (MP) - NIT
1900 = NNP (MP) - 100
NNP (MP) =1900 + 100
NNP (MP) = 2,000
Step 2: Find GNP (MP) from GDP (MP)
GNP (MP) = GDP (MP) + NFIA
GNP (MP) = 2,100 + 200
GNP (MP) = 2,300
NNP (MP)= GNP (MP)- Depreciation
Depreciation = GNP (MP) - NNP (MP)
= 2,300 - 2,000
= 300
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