question_answer

Calculate (a) Net National Product at market price, and (b) Gross Domestic Product at factor cost:
(Rs in crores)
(i)	Rent and interest	6,000
(ii)	Wages and salaries	1,800
(iii)	Undistributed profit	400
(iv)	Net indirect taxes	100
(v)	Subsidies	20
(vi)	Corporation tax	120
(vii)	Net factor income to abroad	70
(viii)	Dividends	80
(ix)	Consumption of fixed capital	50
(x)	Social security contribution by employers	200
(xi)	Mixed income	1,000

Answer:

\[ND{{P}_{FC}}\] = Wages and salaries + SSC by employer + Rent and interest + Dividend + Corporation tax + Undistributed profit + Mixed income \[ND{{P}_{FC}}\] = 1800 + 200 + 6000 + 80 + 120 + 400 + 1000 \[ND{{P}_{FC}}\] = Rs. 9600 Crore

(a) \[NN{{P}_{MP}}\] = NDPFC + NFIA + NIT

\[NN{{P}_{MP}}=Rs.\text{ }9600+(-70)=100\]

\[NN{{P}_{MP}}\]= Rs. 9630 Crores

(b) \[GD{{P}_{FC}}\] = NDPFC + Consumption of fixed capital

\[GD{{P}_{FC}}\] = Rs. 9600 + 50

\[GD{{P}_{FC}}\]= Rs. 9650 Crores