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 from Abroad | (-20) |
Answer & explanation
Correct answer: option 4
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
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