Suppose the GDP at market price of a country in a particular year was Rs 2,100 crores. Depreciation was Rs 50 crores. The value of Indirect taxes was Rs 250 cores, Subsidies was Rs 150 crores and National Income was Rs 1250 crores. Calculate the aggregate value of net factor income from abroad.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → -700
We are given:
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GDP at market price (GDPMP) = ₹2,100 crores
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Depreciation = ₹50 crores
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Indirect taxes = ₹250 crores
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Subsidies = ₹150 crores
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National Income (NNPFC) = ₹1,250 crores
NDPMP = GDPMP – Depreciation = 2,100 – 50 = 2,050 crores
NDPFC = NDPMP – Indirect Taxes + Subsidies = 2,050 – 250 + 150 = 1,950 crores
NNPFC = NDPFC + NFIA or 1,250 = 1,950 + NFIA .
Thus, NFIA= 1,250 - 1,950 = -700