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Question

Calculate (a) Net National Product at market price, and (b) Gross Domestic Product at factor cost.
(i) Rent and interest(Rs. in crores)
6,000
(ii) Wages and salaries1,800
(iii) Undistributed profit400
(iv) Net indirect taxes100
(v) Subsidies20
(vi) Corporation tax120
(vii) Net factor income to abroad70
(viii) Dividends80
(ix) Consumption of fixed capital50
(x) Social security contribution by employers200
(xi) Mixed income1,000

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Solution

GDP at FC = (i) + [(ii) + (x)] + [(iii) + (vi) + (viii)] + (xi) + (ix)
= 6000 + [1800 + 200] + [400 + 120 + 80] + 1000 + 50
= 6000 + 2000 + 600 + 1000 + 50 = Rs. 9650 cr.
NNP at MP = GDP at FC + (iv) – (ix) – (vii)
= 9650 + 100 – 50 – 70 = Rs.9630 cr.

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