Question

From the data given below, calculate

(a) GDP at market price.

(b) Net National Income at Factor Cost.

(c) Personal income.

Data :

(1) NDP at market price – ₹74,905

(2) Net indirect taxes – ₹8,344

(3) Income from Domestic product accruing to Govt. – ₹1,972

(4) Net factor income from abroad – ₹(-) 232

(5) Current transfers to households – ₹2,305

(6) Depreciation – ₹4,486

Answer 1

(a) GDP at market price

GDP_MP = NDP_MP + Depreciation

= ₹74905 + 4486 = ₹79,391 .

(b) Net National Income at factor cost

NNP_FC = NDP_MP – Net indirect tax + Net factor

income from abroad = 74905-8344+ (-) 232 = ₹ 66,329

(c) Personal income

= NNP_FC+ Current transfers to households = 66329 +

2305 = ₹68,634