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

CBSE 2018 Class 12 Economics Exam - Question 14

Question : 14 of 16

Marks: +1, -0

Calculate (a) Net National Product at market price, and (b) Gross Domestic Product at factor cost :

(i)	Rent and interest	6,000
(ii)	Wages and salaries	1,800
(iii)	Indirect taxes	100
(iv)	Corporation tax	120
(v)	Consumption of fixed capital	50
(vi)	Subsidies	20
(vii)	Dividends	80
(viii)	Undistributed profits	400
(ix)	Net factor income to abroad	-70
(x)	Mixed income	1,000
(xi)	Social security contribution by employers	200

Solution:

{\NDP}_{ {\FC}}=

Wages and salaries

+ {\SSC}

by employers + Rent and interest + Dividend + Corporation tax + Undistributed profit + Mixed income

{\NDP}_{ {\FC}}=1800+200+6000

+80+120+400+ 1000

{\NDP}_{ {\FC}}=₹ 9600 \;\text " Crores "\;

(a)

\; {\NNP}_{ {\MP}}= {\NDP}_{ {\FC}}+ {\NFIA}+ {\NIT}

\; {\NNP}_{ {\MP}}=₹ 9600+(-70)+100

\; {\NNP}_{ {\MP}}=₹ 9630 \;\text " Crores "\;

(b)

{\GDP}_{ {\FC}}\;= {\NDP}_{ {\FC}}+\;\text " Consumption of fixed capital "\;

{\GDP}_{ {\FC}}\;=₹ 9600+50

{\GDP}_{ {\FC}}\;=₹ 9650 \;\text " Crores "\;

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