InterviewSolution
Saved Bookmarks
InterviewSolution
| 1. |
From the following data Calculate the GDP at Factor cost by(a) Expenditure method and (b) Income methodItems :Rs.in Crores1) Personal consumption expenditure7002) Wages and salaries7003) Employer’s contribution to social security schemes1004) Gross domestic capital formation705) Rent1006) Mixed income600 7) Net factor income from abroad258) Consumption of fixed capital259) Indirect taxes10 10) Net exports3511) Government final consumption expenditure80012) Profit6313) Interest 1214) Subsidies5 |
|
Answer» 1) GDPFC by Expenditure Method: GDPMP = Personal consumption expenditure + Govt. final consumption expenditure + Gross domestic capital formation + net exports. = 700 + 800 + 70 + 35 = 1605 Rs. in Crores. GDPFC = = GDPMP – Indirect taxes + Subsides = 1605 – 10 + 5 = 1610 – 10 = 1600 Rs. in Crores. 2) GDPFC by Income Method: (i) GDPFC = Rent + Interest + wages & salaries + employer’s contribution to social security schemes + profit + mixed income + consumption of fixed capital. 100 + 12 + 700 + 100 + 63 + 600 + 25 = 1600 Rs. Crores. ∴ GDPFC by Exp. method = 1600 Rs. Crores GDPFC by Income Method = 1600 Rs. Crores |
|