Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Calculate the Gross Domestic Product at market price for the data given  below :

 
$NNP_{FC}$ 380
Normal wear and tear 40
Subsidies (Net) 40
Intermediate  Cost 120
Net factor income to Abroad (-20)
   

 

Options:

₹280

₹360

₹320

₹400

Correct Answer:

₹400

Explanation:

The correct answer is option (4) : ₹400

Step 1: Find out $NDP_{FC}$

$NNP_{FC}$= $NDP_{FC}$ + NFIA

380 = $NDP_{FC}$ -20

$NDP_{FC}$ = 400

Step 2: Find out $NDP_{MP}$

$NDP_{FC}$ = $NDP_{MP}$ - (Indirect taxes- Subsidies)

400 = $NDP_{MP}$ - (-40)

$NDP_{MP}$ = 400-40 = 360

Step 3: Find out $GDP_{MP}$

$NDP_{MP}$ = $GDP_{MP}$ - Depreciation

360 = $GDP_{MP}$ - 40

$GDP_{MP}$ = 360 + 40

                    = 400