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Calculate ‘Net Domestic Product at Market Price’ from the following data: Items (₹ in crore) (i) Net indirect taxes 38 (ii) Consumption of fixed capital 34 (iii) Net factor income from abroad (-)3 (iv) Rent 10 (v) Profit 25 (vi) Interest 20 (vii) Royalty 5 (viii) Wages and salaries 170 (ix) Employer’s contribution to social security schemes 30.?
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Calculate ‘Net Domestic Product at Market Price’ from the following da...
Calculation of Net Domestic Product at Market Price
Net Domestic Product at Market Price (NDPmp) is calculated by subtracting depreciation and indirect taxes from Gross Domestic Product at Market Price (GDPmp).
Formula: NDPmp = GDPmp – Depreciation – Indirect Taxes
Given data:
Net indirect taxes = 38 crore
Consumption of fixed capital = 34 crore
Net factor income from abroad = -3 crore
Rent = 10 crore
Profit = 25 crore
Interest = 20 crore
Royalty = 5 crore
Wages and salaries = 170 crore
Employer’s contribution to social security schemes = 30 crore
Calculation of GDPmp:
GDPmp = Rent + Profit + Interest + Royalty + Wages and salaries + Employer’s contribution to social security schemes + Net factor income from abroad + Net indirect taxes
GDPmp = 10 + 25 + 20 + 5 + 170 + 30 + (-3) + 38
GDPmp = 295 crore
Calculation of Depreciation:
Depreciation = Consumption of fixed capital
Depreciation = 34 crore
Calculation of NDPmp:
NDPmp = GDPmp – Depreciation – Indirect Taxes
NDPmp = 295 – 34 – 38
NDPmp = 223 crore
Therefore, the Net Domestic Product at Market Price (NDPmp) is 223 crore.
Explanation:
- Net Domestic Product at Market Price (NDPmp) is the market value of all final goods and services produced within the domestic territory of a country during a particular year, minus depreciation and indirect taxes.
- Indirect taxes are those taxes which are levied on goods and services and are included in their price. Net indirect taxes are calculated by subtracting subsidies from indirect taxes.
- Consumption of fixed capital refers to the amount of capital goods used up in the production process during a year. It is also known as depreciation.
- Net factor income from abroad is the difference between income received by domestic factors of production from foreign sources and income paid to foreign factors of production for their contribution to domestic production.
- Rent, profit, interest, royalty, wages and salaries, and employer’s contribution to social security schemes are the components of GDPmp.
- Depreciation and indirect taxes are subtracted from GDPmp to arrive at NDPmp. NDPmp gives a better picture of the actual output of an economy as it takes into account the wear and tear of capital goods and the subsidies provided by the government.
Net Domestic Product at Market Price (NDPmp) is calculated by subtracting depreciation and indirect taxes from Gross Domestic Product at Market Price (GDPmp).
Formula: NDPmp = GDPmp – Depreciation – Indirect Taxes
Given data:
Net indirect taxes = 38 crore
Consumption of fixed capital = 34 crore
Net factor income from abroad = -3 crore
Rent = 10 crore
Profit = 25 crore
Interest = 20 crore
Royalty = 5 crore
Wages and salaries = 170 crore
Employer’s contribution to social security schemes = 30 crore
Calculation of GDPmp:
GDPmp = Rent + Profit + Interest + Royalty + Wages and salaries + Employer’s contribution to social security schemes + Net factor income from abroad + Net indirect taxes
GDPmp = 10 + 25 + 20 + 5 + 170 + 30 + (-3) + 38
GDPmp = 295 crore
Calculation of Depreciation:
Depreciation = Consumption of fixed capital
Depreciation = 34 crore
Calculation of NDPmp:
NDPmp = GDPmp – Depreciation – Indirect Taxes
NDPmp = 295 – 34 – 38
NDPmp = 223 crore
Therefore, the Net Domestic Product at Market Price (NDPmp) is 223 crore.
Explanation:
- Net Domestic Product at Market Price (NDPmp) is the market value of all final goods and services produced within the domestic territory of a country during a particular year, minus depreciation and indirect taxes.
- Indirect taxes are those taxes which are levied on goods and services and are included in their price. Net indirect taxes are calculated by subtracting subsidies from indirect taxes.
- Consumption of fixed capital refers to the amount of capital goods used up in the production process during a year. It is also known as depreciation.
- Net factor income from abroad is the difference between income received by domestic factors of production from foreign sources and income paid to foreign factors of production for their contribution to domestic production.
- Rent, profit, interest, royalty, wages and salaries, and employer’s contribution to social security schemes are the components of GDPmp.
- Depreciation and indirect taxes are subtracted from GDPmp to arrive at NDPmp. NDPmp gives a better picture of the actual output of an economy as it takes into account the wear and tear of capital goods and the subsidies provided by the government.
Community Answer
Calculate ‘Net Domestic Product at Market Price’ from the following da...
NDPmp = NDPfc + NIT
= (COE + OS + MI) + NIT
= 170 + 30 + 10 + 5 + 20 + 25 + 38
= 298
= (COE + OS + MI) + NIT
= 170 + 30 + 10 + 5 + 20 + 25 + 38
= 298
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Calculate ‘Net Domestic Product at Market Price’ from the following data: Items (₹ in crore) (i) Net indirect taxes 38 (ii) Consumption of fixed capital 34 (iii) Net factor income from abroad (-)3 (iv) Rent 10 (v) Profit 25 (vi) Interest 20 (vii) Royalty 5 (viii) Wages and salaries 170 (ix) Employer’s contribution to social security schemes 30.?
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Calculate ‘Net Domestic Product at Market Price’ from the following data: Items (₹ in crore) (i) Net indirect taxes 38 (ii) Consumption of fixed capital 34 (iii) Net factor income from abroad (-)3 (iv) Rent 10 (v) Profit 25 (vi) Interest 20 (vii) Royalty 5 (viii) Wages and salaries 170 (ix) Employer’s contribution to social security schemes 30.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Calculate ‘Net Domestic Product at Market Price’ from the following data: Items (₹ in crore) (i) Net indirect taxes 38 (ii) Consumption of fixed capital 34 (iii) Net factor income from abroad (-)3 (iv) Rent 10 (v) Profit 25 (vi) Interest 20 (vii) Royalty 5 (viii) Wages and salaries 170 (ix) Employer’s contribution to social security schemes 30.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate ‘Net Domestic Product at Market Price’ from the following data: Items (₹ in crore) (i) Net indirect taxes 38 (ii) Consumption of fixed capital 34 (iii) Net factor income from abroad (-)3 (iv) Rent 10 (v) Profit 25 (vi) Interest 20 (vii) Royalty 5 (viii) Wages and salaries 170 (ix) Employer’s contribution to social security schemes 30.?.
Calculate ‘Net Domestic Product at Market Price’ from the following data: Items (₹ in crore) (i) Net indirect taxes 38 (ii) Consumption of fixed capital 34 (iii) Net factor income from abroad (-)3 (iv) Rent 10 (v) Profit 25 (vi) Interest 20 (vii) Royalty 5 (viii) Wages and salaries 170 (ix) Employer’s contribution to social security schemes 30.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Calculate ‘Net Domestic Product at Market Price’ from the following data: Items (₹ in crore) (i) Net indirect taxes 38 (ii) Consumption of fixed capital 34 (iii) Net factor income from abroad (-)3 (iv) Rent 10 (v) Profit 25 (vi) Interest 20 (vii) Royalty 5 (viii) Wages and salaries 170 (ix) Employer’s contribution to social security schemes 30.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate ‘Net Domestic Product at Market Price’ from the following data: Items (₹ in crore) (i) Net indirect taxes 38 (ii) Consumption of fixed capital 34 (iii) Net factor income from abroad (-)3 (iv) Rent 10 (v) Profit 25 (vi) Interest 20 (vii) Royalty 5 (viii) Wages and salaries 170 (ix) Employer’s contribution to social security schemes 30.?.
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