Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:
Calculate GDP mp.
  1. Private final consumption expenditure = Rs 200 Cr
  2. Indirect Tax = Rs30 Cr
  3. Government final Consumption expenditure = Rs 100 Cr
  4. Net Exports = Rs 50 Cr
  5. Gross Domestic Capital formation = Rs 50 Cr
  6. Depreciation- Rs 20 Cr
Options:
370

400

320

270

Correct Answer:

400

Explanation:

National income can be estimated with the help of 3 methods i.e. Income method, Expenditure method, and Value added method. In this question, we will be estimating GDPMP with the help of "Expenditure method"

GDPMP = Private final consumption expenditure + Government final consumption expenditure + Gross domestic capital formation + Net exports (X - M)

According to the question: 

GDPMP = 200 crore + 100 crore  + 50 crore  + 50 crore 

GDPMP = 400 crore