Calculate Net National Product at Market Price and (Private income) : S.No. Particular Amount ₹ in crore (i) Net current transfers to abroad 10 (ii) Private final consumption expenditure 500 (iii) Current transfers from government 30 (iv) Net exports (-)20 (v) Net indirect tax 120 (vi) National debt interest 70 (vii) Net domestic capital formation 80 (viii) Income accruing to government 60 (ix) Income accruing to government 60 (x) Government final consumption expenditure 100

CBSE 2016 Class 12 Economics Outside Delhi Set-2 - Question 5

Question : 5 of 5

Marks: +1, -0

Calculate Net National Product at Market Price and (Private income) :

S.No.	Particular	Amount ₹ in crore
(i)	Net current transfers to abroad	10
(ii)	Private final consumption expenditure	500
(iii)	Current transfers from government	30
(iv)	Net exports	(-)20
(v)	Net indirect tax	120
(vi)	National debt interest	70
(vii)	Net domestic capital formation	80
(viii)	Income accruing to government	60
(ix)	Income accruing to government	60
(x)	Government final consumption expenditure	100

Solution:

{\GDP}_{ {\MP}}=

Private Final Consumption Expenditure + Government Final Consumption Expenditure + (Net Domestic Capital Formation+ Depreciation) + Net Exports

\;=500+100+(80+0)+(-20)

\;=600+80-20

\;=680-20

\;=₹ 660 \;\text " crores. "\;

{\NNP}_{ {\MP}}= {\GDP}_{ {\MP}}-

Depreciation - Net Factor Income to abroad

\;=660-0-20

\;=660-20

\;=\₹ 640 \;\text " crores. "\;

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