Calculate Gross Domestic Product at mark

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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Read the passage carefully and answer the questions based on the passage:

Composition of GDP: Income Method

S.No.	Items	Estimates (in crores)
1	Compensation for employees	2000
2	Rent	20
3	Interest	30
4	Royalty	40
5	Profit	50
6	Mixed income for self-employed	1000
7	Net factor income from abroad	-3
8	Indirect taxes	500
9	Subsidies	400
10	Depreciation	260

Calculate Gross Domestic Product at market price (GDP_MP).

Options:

Rs. 3500 crores

Rs. 3137 crores

Rs. 3140 crores

Rs. 3000 crores

Correct Answer:

Rs. 3500 crores

Explanation:

The correct answer is Option (1) → Rs. 3500 crores

NDP at FC = Compensation of Employees + Rent + Interest + Royalty + Profit + Mixed Income of Self-Employed + Net Factor Income from Abroad

= 2000 + 20 + 30 + 40 + 50 + 1000

= Rs. 3140 crore

Now Convert NDP (FC) to GDP (MP)

GDP (MP)= NDP (FC) + Depreciation + Indirect Taxes − Subsidies

= 3140 + 260 + 500 − 400

=3500 crores