Question : Calculate NDP at FC by expenditure method. Particulars Rs. in crore Gross fixed capital formation 150 Private final consumption expenditure 210 Mixed income 200 Net factor income from ROW -20 ...

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Question : Calculate NDP at FC by expenditure method.

Particulars Rs. in crore

Gross fixed capital formation 150

Private final consumption expenditure 210

Mixed income 200

Net factor income from ROW -20

Exports 20

Imports 10

Compensation of employees 250

Government final consumption expenditure 70

Consumption of fixed capital 40

Indirect tax 20

Subsidies 20

Rent, interest and profit 30

Change in stock 50

Interest on national debt 100

Option 1: 400
Option 2: 450
Option 3: 500
Option 4: None of the above

Team Careers360 6th Jan, 2024

Answer

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Answer (1)

Team Careers360 23rd Jan, 2024

Correct Answer: 450

Solution :

NDP at FC = Gross fixed capital formation + government final consumption expenditure + private final consumption expenditure + (exports-imports) + change in stock - consumption of fixed capital - (indirect taxes - subsidies)

= 150+70+210+(20-10)+50-40-(20-20)

= Rs. 450 crore.

Hence, Option B is correct.

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Question : Calculate NNP at FC

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Government final consumption expenditure	70
Consumption of fixed capital	40
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