Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Calculate $NNP_{MP}$ (in ₹ crores) from the following information  :

$GDP_{MP}= ₹7000 $ crores

Receipts of factor income from the rest of the world = ₹250 crores

Payment of factor income to the rest of the world = ₹ 325 crores

Depreciation = ₹900 crores

Options:

₹6000 crores

₹6025 crores

₹6500 crores

₹6750 crores

Correct Answer:

₹6025 crores

Explanation:

The correct answer is option (2) : ₹6025 crores

Given the information :

GDPMP = 7000 crores

Receipts of factor income from the rest of the world = 250 crores

Payment of factor income to the rest of the world = 325 crores

Depreciation = 900 crores

GNP (MP)= GDP (MP) + NFIA

             = 7,000 + (250 - 325)

             = 6,925

NNP (MP)= GNP (MP)- Depreciation

             = 6,925-900

             = 6,025