CBSE 2025, Compartment, Set 1

Question

On the basis of the following data, estimate the value of National Income ($NNP_{FC}$):

| S.No. | Items | Amount (in crore) |
|---|---|---|
| (i) | Private Final Consumption Expenditure | 1,000 |
| (ii) | Government Final Consumption Expenditure | 2,000 |
| (iii) | Gross Domestic Fixed Capital Formation | 1,000 |
| (iv) | Net Exports | 100 |
| (v) | Net Additions to Stock | 50 |
| (vi) | Consumption of Fixed Capital | 100 |
| (vii) | Net Factor Income from Abroad | 20 |
| (viii) | Net Indirect Taxes | 200 |

Edvaya · Accepted Answer

The correct answer is Subjective. **1. Calculation of Gross Domestic Product at Market Price ($GDP_{MP}$):** Using the Expenditure Method: $GDP_{MP}$ = Private Final Consumption Expenditure (i) + Government Final Consumption Expenditure (ii) + Gross Domestic Capital Formation + Net Exports (iv) Here, Gross Domestic Capital Formation = Gross Domestic Fixed Capital Formation (iii) + Net Additions to Stock (v) = $1,000 + 50 = 1,050$. $GDP_{MP} = 1,000 + 2,000 + 1,050 + 100 = ₹4,150 	ext{ crore}$. **2. Calculation of National Income ($NNP_{FC}$):** $NNP_{FC} = GDP_{MP} - 	ext{Consumption of Fixed Capital (vi)} + 	ext{Net Factor Income from Abroad (vii)} - 	ext{Net Indirect Taxes (viii)}$ $NNP_{FC} = 4,150 - 100 + 20 - 200$ $NNP_{FC} = 4,170 - 300$ $NNP_{FC} = ₹3,870 	ext{ crore}$.

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Economics > Introductory Macroeconomics > National Income Aggregates

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S.No.	Items	Amount (in crore)
(i)	Private Final Consumption Expenditure	1,000
(ii)	Government Final Consumption Expenditure	2,000
(iii)	Gross Domestic Fixed Capital Formation	1,000
(iv)	Net Exports	100
(v)	Net Additions to Stock	50
(vi)	Consumption of Fixed Capital	100
(vii)	Net Factor Income from Abroad	20
(viii)	Net Indirect Taxes	200