Practicing Success
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 : |
₹100 crores ₹400 crores ₹200 crores ₹300 crores |
₹300 crores |
The correct answer is option (4) : ₹300 crores NI= NNP(at factor cost) = 1,900 NFIA = 200 GDP(at market price) = 2,100NNP(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 |