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Non-Competitive Markets

Question
CBSEENEC12012629

Calculate GNP at MP by (a) income method, and (b) expenditure method.

     

(र in crores)

 
   

Set I

Set II

Set III

(i)

Net exports

10

10

10

(ii)

Rent

20

20

20

(iii)

Private final consumption expenditure

400

400

400

(iv)

Interest

30

30

30

(v)

Dividends

45

45

45

(vi)

Undistributed profits

5

5

5

(vii)

Corporate taxes

10

10

10

(viii)

Government final consumption expenditure

100

100

100

(ix)

Net domestic capital formation

50

50

50

(x)

Compensation of employees

400

400

400

(xi)

Consumption of fixed capital

10

20

10

(xii)

Net indirect taxes

50

40

50

(xiii)

Net factor income from abroad

-10

10

-20

 

Solution

(a) GNP at MP (Income method)
Set I = 20 + 30 + 45 + 5 + 10 + 400 + 10 + 50 + (-10)
= 560 crores
Set II = 20 + 30 + 45 + 5 + 10 + 400 + 20 + 40 + (10)
= 580 crores
Set III = 20 + 30 + 45 + 5 + 10 + 400 + 10 + 50 + (-20)
= 550 crores
(b) GNP at MP (Expenditure method)
Set I = 10 + 400 + 100 + 50 + 10 + (-10) = 560 crores
Set II = 10 + 400 + 100 + 50 + 20 + 10 = 590 crore
Set III = 10 + 400 + 100 + 50 + 10 + (-20) = 550 crores