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in Economics by (50.9k points)
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Calculate 

(a) Net National Product at market price, and 

(b) Gross Domestic Product at factor

1 Answer

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Best answer

(a) Net National Product at market price = Rent and interest + Wages and salaries + Social security contribution by employers + Undistributed profit + Corporation tax + Dividends + Mixed income + Net indirect taxes – Net factor income to abroad 

= 6,000 + 1,800 + 200 + 400 + 120 + 80 + 1,000 + 100 – 70 

= 9,700 – 70 

= ₹ 9,630 Crores 

(b) Gross Domestic Product at factor cost = Net national product at market price + Consumption of fixed capital + Net factor income to abroad – Net indirect taxes 

= 9,630 + 50 + 70- 100

= 9,750 – 100 

= ₹ 9,650 Crores

Alternatively : 

Gross Domestic Product at factor cost = Rent and interest + Wages and salaries + Social security contribution by employers + Undistributed profit + Corporation tax + Dividends + Mixed income + Consumption of fixed capital 

= 6,000 + 1,800 + 200 + 400 + 120 + 80 + 1,000 + 50 

= ₹ 9,650 Crores

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