question_answer

Calculate (a) 'Net Domestic Product at Factor Cost'from the following:
(Rs. crores)
(i)	Domestic product accruing to government	300
(ii)	Wages and salaries	1,000
(iii)	Net current transfers to abroad	(-) 20
(iv)	Rent	100
(v)	Interest paid by the production units	130
(vi)	National debt interest	30
(vii)	Corporation tax	50
(viii)	Current transfers by government	40
(ix)	Contribution to social security schemes by employees	200
(x)	Dividends	100
(xi)	Undistributed profits	20
(xii)	Net factor income to abroad	0

 

Answer:

(a)\[ND{{P}_{FC}}\] = wages & salary + contribution to social seunit of scheme + Rent + Interest + corporation tax + Dividend + Undistributed profit.

= Wages and salaries + Rent + Interest paid by production units + Corporation tax + Contribution to social security schemes by employers + Dividends + Undistributed profits

= (ii) + (iv) + (v) + (vii) + (ix) + (x) + (xi)

\[=1,000+100+130+50+200+100+20\]

= Rs. 1,600 crores