Suppose the GDP at market price of a country in a particular year was ₹2,100 crores. Net Factor Income from abroad was ₹ 200 crores. The value of Indirect Taxes net of subsidies was ₹ 100 crores and national income was 1,900 crores. The aggregate value of depreciation in the economy will be :
Answer & explanation
Correct answer: option 4
The correct answer is option (4) : ₹300 crores
NI= NNP(at factor cost) = 1,900
NFIA = 200
GDP(at market price) = 2,100
NNP(at factor cost) + Depreciation - Net factor income from abroad + Net Indirect taxes = GDP(at market price)
Net Indirect Taxes = 100
1,900 + Depreciation - 200 + 100 = 2,100
Depreciation = 2,100 - 1,900 + 200 -100 = 300