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Class 12
Macro Economics
National Income Accounting
suppose the gdp at market price of a country in a...

Question:
Suppose the GDP at market price of a country in a particular year was Rs 1,100 crores. Net Factor Income from Abroad was Rs 100 crores. The value of Indirect taxes – Subsidies was Rs 150 crores and National Income was Rs 850 crores. Calculate the aggregate value of depreciation.

Answer:

National Income (NNPFC) = Rs.850 crores

GDPmp = Rs.1100 crores

Net factor income from abroad = Rs.100 crores
Net indirect taxes = Rs.150 crores
NNPFC = GDPmp + Net factor income from abroad - Depreciation - Net indirect taxes
Putting these values in the formula,

850 = 1100 + 100 - Depreciation - 150
⇒ 850 = 1100 - 50 - Depreciation
⇒ 850 = 1050 - Depreciation
⇒ Depreciation = 1050 - 850 = Rs.200 crores

So, depreciation is Rs.200 crores.

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Question:
Suppose the GDP at market price of a country in a particular year was Rs 1,100 crores. Net Factor Income from Abroad was Rs 100 crores. The value of Indirect taxes – Subsidies was Rs 150 crores and National Income was Rs 850 crores. Calculate the aggregate value of depreciation.

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Question: Suppose the GDP at market price of a country in a particular year was Rs 1,100 crores. Net Factor Income from Abroad was Rs 100 crores. The value of Indirect taxes – Subsidies was Rs 150 crores and National Income was Rs 850 crores. Calculate the aggregate value of depreciation.

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Popular questions of class 12 Macro Economics

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Question:
Suppose the GDP at market price of a country in a particular year was Rs 1,100 crores. Net Factor Income from Abroad was Rs 100 crores. The value of Indirect taxes – Subsidies was Rs 150 crores and National Income was Rs 850 crores. Calculate the aggregate value of depreciation.