Calculate (a) Net National Product at market price, and (b) Gross Domestic Product at factor cost: (Rs in crores)
(i) Rent and interest - 6,000
(ii) Wages and salaries - 1,800
(iii) Undistributed profit - 400
(iv) Net indirect taxes - 100
(v) Subsidies - 20
(vi) Corporation tax - 120
(vii) Net factor income to abroad - 70
(viii) Dividends - 80
(ix) Consumption of fixed capital - 50
(x) Social security contribution by employers - 200
(xi) Mixed income - 1,000
a. NNP at a Market price: COE+OS+MISE+NFIA+NIT
• Compensation of employees (COE): Wages and salaries + social security compensation
• Operating Surplus (OS): Rent + Interest + Profit
• Mixed-Income of Self Employed (MISE): Mixed-income
• Net Income from Abroad (NFIA): National income from aboard – National income to abroad.
• Net Indirect Tax: Indirect tax – Subsidies
COE = 1800+200 = 2000
OS = 6000+400+120+80 = 6600
MISE = 1000
NFIA = 0 – 70 = -70
NIT = 100 (given)
NNP at MP = 2000+6600+1000+(-70)+100
= 9630
b) GDP at Factor cost: NNP at MP + Depreciation (Consumption of fixed capital)
= 9630 + 50
= 9680
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