Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

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  :

Options:

₹100 crores

₹400 crores

₹200 crores

₹300 crores

Correct Answer:

₹300 crores

Explanation:

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