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National Income Accounting
Question
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Suppose the GDP at MP of a country in a particular year was र 1100 crores. Net Factor Income from abroad wass 100 crores. The value of Indirect tax — Subsidies was र 150 crores and National Income was र 850 crores. Calculate aggregate value of depreciation. 

Answer

GDP at MP = National Income - Net factor income from abroad - Net indirect tax + Depreciation
Depreciation = GDP at MP - NI + NFIA - Net indirect tax
= 1100 - 850 + 100 - 150 = 200 crores.

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Some More Questions From National Income Accounting Chapter

Briefly explain the following basic concepts related to NI:
 National Income (NI).

Briefly explain the following basic concepts related to NI:
Final Goods and Intermediate Goods. 

Briefly explain the following basic concepts related to NI:
Consumption Goods and Capital Goods

Briefly explain the following basic concepts related to NI:
Flow and Stock Concepts

Briefly explain the following basic concepts related to NI:
Gross Investment and Net Investment

Briefly explain the following basic concepts related to NI:
Domestic (Economic) Territory

Briefly explain the following basic concepts related to NI:
Normal Residents

Briefly explain the following basic concepts related to NI:
National Income at Current and Constant Prices (Nominal and Real NI).

Briefly explain the following basic concepts related to NI:
Consumption of Fixed Capital (Depreciation).

Briefly explain the following basic concepts related to NI:
Factor Cost vs. Market Price (or Net Indirect Taxes)