Analyse the information given below , and answer the questions
| ₹ in crores | |
| (i) Net Indirect Taxes | 38 |
| (ii) Consumption of fixed capital | 34 |
| (iii) Net factor Income from Abroad | (-)3 |
| (iv) Rent | 100 |
| (v) Profits | 225 |
| (vi) Interest | 40 |
| (vii) Mixed Income of self-employed | 150 |
| (viii) Wages and salaries | 200 |
| (ix) Employers' contribution to social security schemes | 50 |
From the above information, calculate $GDP_{MP}$ :
Answer & explanation
Correct answer: option 3
The correct answer is option (3) : ₹837 crores
Step 1: Calculate $NDP_{FC}$ : NDPFC is the sum of all incomes earned within the domestic economy (Rent, Profits, Interest, Mixed Income, Wages and salaries, Employers' contribution to social security schemes).
$NDP_{FC}$ =Rent+Profits+Interest+Mixed Income+Wages and salaries+ Employers' contribution to social security schemes
$NDP_{FC}$ = 100+225+40+150+200+50=765 crores
Step 2: Calculate $GDP_{FC}$ from $NDP_{FC}$ :
$GDP_{FC}$ = $NDP_{FC}$ + Consumption of Fixed Capital
= 765 +34
= 799 Cr
Step 3: Calculate $GDP_{MP}$ from $GDP_{FC}$
$GDP_{MP}$ = $GDP_{FC}$ + Net Indirect Raxes
= 799 + 38
= 837 Cr