Question

Suppose in an imaginary economy GDP at Market Price in a particular fiscal years was Rs.4,000 crore, National Income was Rs.2,500 crore, Net Factor Income paid by the economy to rest of the world was Rs.400 crore and the value of Net Indirect Taxes is Rs.450 crore. Estimate the value of consumption of fixed capital for the economy from the given data

Answer 1

NNP_FC=GDF_MP- Consumption of Fixed Capital - Net Factor Income to Abroad -Net Indirect Taxes

2,500=4,000-CFC-450-400

2,500=3,150-CFC

CFC=650(Rs. in crore)