Gross National Product at market price of an economy is ₹65,000 cr. The capital stock of the economy is valued at ₹1,20,000 cr. which depreciated at the rate of 10% p.a. Indirect taxes amount to ₹6,000 cr. and subsidies to ₹1,000 cr. Estimate the National Income (NNPfc).
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 48000 cr.
Gross National Product at market price = ₹65,000 cr.
Depreciation = 10% of ₹1,20,000 cr. = 12,000 Cr
Indirect taxes amount to ₹6,000 cr.
Subsidies to ₹1,000 cr.
Net Indirect Taxes = Indirect taxes - Subsidies
= 6,000 - 1,000 = 5,000 Cr
National Income = NNP at Factor Price
NNP at Market price = GNP at market price - depreciation
= 65,000 - 12,000= 53,000 cr
NNP at FC = NNP at Market price - NIT
= 53,000 - 5,000 = 48,000 Cr