WebSolution: National Income or NNP at FC = GDP at MP -M Consumption of fixed capital + (Factor income from abroad – factor income to abroad) – (Goods and Services tax – Subsidies) =5,500 – 300 + (150-250) – (120-70) = ₹ 5,050 crores Explore link: Circular Flow of Income Solutions Question 4 Define domestic income.
What is the formula of GDPmp and GDPfc? - Byju
WebSee the following cases. Case- I. If the gross domestic product (GDP) at MP = $2000, Net factor income from abroad (NFIA) = $ 50, Depreciation = $10, Indirect Tax = $ 30, Subsidy = $20, then compute NDP, GNP, and NNP at market price and … WebFormula: GNP(at MP)= GDP(at FC) - Net factor income to abroad + Indirect Tax - Subsidies ... GDP at MP (ii) Indirect Taxes (iii) Factor income from abroad (iv) Consumption of Fixed Capital (v) Factor income to abroad (vi) Subsidies: 70,150 5,200 800 3,100 300 4,000: Medium. View solution > get the amazon
Aggregates of National Income to Measure the Value of Goods …
WebGDP MP is the total value of a nation’s goods and services produced locally—during a given accounting year. It is evaluated as follows: GDPMP = Net Domestic Product at FC (NDPFC) + Depreciation + Net Indirect Tax #2 – Gross Domestic Product at Factor Cost (GDPFC) It is the total value of domestic production minus net indirect taxes. WebDec 9, 2024 · The First Thing we could understand from the above discussion is that GDP (FC) is GDP (MP) minus indirect taxes plus subsidies. Here we can figure out that the more is the subsidy, the more is difference between the GDP(FC) & GDP (MP). GDP(FC) and GDP(FC) will increase. The same is opposite for Indirect taxes. WebThis gives GDP at Market Price (MP) – because it includes depreciation (therefore ‘gross’) and taxes (therefore ‘market price’) To reach National Income (that is, NNP at FC) Add Net Factor Income from Abroad: GNP at MP = GDP at MP + NFIA Subtract Depreciation: NNP at MP = GNP at MP – Dep Subtract Net Indirect Taxes: NNP at FC = NNP at MP – NIT get the alignment