question_answer

Calculate Gross Domestic Product at Market Price (      ) by using             (i) Product Method                                  (ii) Income Method                                         

S.No	Items	(Rs) in crores
(i)	Intermediate Consumption of                                 (a)Primary Sector                                 (b)Secondary Sector                                 (c)Tertiary Sector	10,00 800 600 600
(ii)	Value of Output of                                 (a)Primary Sector                                 (b)Secondary Sector                                 (c)Tertiary Sector	2,000 1,800 1,400
(iii)	Rent and Royalty	20
(iv)	Compensation of Employees	800
(v)	Benefits of Rent Free Accommodation and Interest Free Loans of Employees	400
(vi)	Mixed Income of the People Using Family inputs	1,300
(vii)	Operating Surplus	600
(viii)	Net Factor Income to Rest of the World	40
(ix)	Interest	10
(x)	Consumption of Fixed Capital	80
(xi)	Net Indirect Taxes	20

Answer:

 (i) By Product Method Gross Domestic Product at Market Price\[(GD{{P}_{MP}})\] = Value of Output (Primary Sector + Secondary Sector + Tertiary Sector) \[-\]Intermediate Consumption (Primary Sector + Secondary Sector + Tertiary Sector) \[=\text{(}2,000+1,800+1,400\text{)}-(1,000+800+600)=5,200-2,400\] =Rs. 2,800 crore (ii) By Income Method Net Domestic Product at Factor Cost\[(ND{{P}_{FC}})\] = Compensation of Employees + Operating Surplus + Mixed Income             \[=\text{ }800+600+1,300=Rs.\,\,2,700\,\,crores\] \[GD{{P}_{MP}}=ND{{P}_{FC}}+Net\text{ }Indirect\text{ }Tax+Depreciation\] =2,700+20+80=Rs.2, 800 crore