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 (GDPMP).
Answer & explanation
Correct answer: option 1
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