From the following data, calculate GNP at MP by (a) income method, and (b) expenditure method.

(र in crores)

(i)

Government final consumption expenditure

250

(ii)

Change in stocks

65

(iii)

Net domestic capital formation

150

(iv)

Interest

90

(v)

Profits

210

(vi)

Corporation tax

50

(vii)

Rent

100

(viii)

Factor income from abroad

20

(ix)

Indirect taxes

55

(x)

Factor income to abroad

40

(xi)

Exports

60

(xii)

Subsidies

25

(xiii)

Imports

80

(xiv)

Consumption of fixed capital

20

(xv)

Private final consumption expenditure

500

(xvi)

Compensation of employees

450

(xvii)

Value of rent free accommodation to employees

40

Solution

(a) GNP at MP (by income method)
= 90 + 210 + 100 + 20 + 55 - 40 - 25 + 20 + 450 = 880 crores
(b) GNP at MP (by expenditure method)
= 250 + 150 + 20 - 40 + 60 - 80 + 20 + 500 = 880 crores

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(र in crores)
(i)	Government final consumption expenditure	250
(ii)	Change in stocks	65
(iii)	Net domestic capital formation	150
(iv)	Interest	90
(v)	Profits	210
(vi)	Corporation tax	50
(vii)	Rent	100
(viii)	Factor income from abroad	20
(ix)	Indirect taxes	55
(x)	Factor income to abroad	40
(xi)	Exports	60
(xii)	Subsidies	25
(xiii)	Imports	80
(xiv)	Consumption of fixed capital	20
(xv)	Private final consumption expenditure	500
(xvi)	Compensation of employees	450
(xvii)	Value of rent free accommodation to employees	40

For Daily Free Study Material Join wiredfaculty

Non-Competitive Markets

Some More Questions From Non-Competitive Markets Chapter

National Income (NI)

Final Goods and Intermediate Goods

Giving reasons categorise the following into intermediate products and final products:(i) Furniture purchased by a school(ii) Chalks, dusters purchased by a school.

Consumption Goods and Capital Goods

Flow and Stock Concepts

Giving reasons categorise the following into stocks and flows:(i) Losses (ii) Capital (iii) Production (iv) Wealth.

Gross Investment and Net Investment

Domestic (Economic) Territory

National Income at Current and Constant Prices (Nominal and Real NI)

Consumption of Fixed Capital (Depreciation)

Mock Test Series

NCERT Sample Papers

Entrance Exams Preparation

Giving reasons categorise the following into intermediate products and final products:
(i) Furniture purchased by a school
(ii) Chalks, dusters purchased by a school.

Giving reasons categorise the following into stocks and flows:
(i) Losses (ii) Capital (iii) Production (iv) Wealth.