Can anybody help me with full concept find out 1.Gross National Product at Market price 2. Net National Product at Market price from the following information l. Private Consumption expenditure 1,08,000 2. Govt. consumption expenditure 11,00,000 3. Gross capital formation 2,000 4. Export 5,000 5. Import 14,000 6. Net factor income from abroad 750 7. Depreciation 400?

Question

Answer

Gross National Product at Market Price

Gross National Product (GNP) at Market Price is the total monetary value of all the final goods and services produced by the citizens of a country within a year. It includes all the final goods and services produced within the country's geographical boundaries, regardless of the nationality of the producer.

GNP at Market Price is calculated by adding up all the final goods and services produced within a country's geographical boundaries, including income earned by foreign residents within the country and subtracting the income earned by the country's citizens abroad.

Formula to calculate GNP at Market Price = Private Consumption expenditure + Government consumption expenditure + Gross capital formation + Net factor income from abroad + Export - Import

Net National Product at Market Price

Net National Product (NNP) at Market Price is the total monetary value of all the final goods and services produced by the citizens of a country minus the depreciation of capital goods within a year.

NNP at Market Price is calculated by subtracting the depreciation of capital goods from GNP at Market Price.

Formula to calculate NNP at Market Price = GNP at Market Price - Depreciation

Calculation

Private Consumption expenditure = 1,08,000

Government consumption expenditure = 11,00,000

Gross capital formation = 2,000

Export = 5,000

Import = 14,000

Net factor income from abroad = 750

Depreciation = 400

Using the formula to calculate GNP at Market Price: GNP at Market Price = 1,08,000 + 11,00,000 + 2,000 + 750 + 5,000 - 14,000 = 11,01,750

Using the formula to calculate NNP at Market Price: NNP at Market Price = GNP at Market Price - Depreciation = 11,01,750 - 400 = 11,01,350

Conclusion

Therefore, the Gross National Product (GNP) at Market Price is 11,01,750 and the Net National Product (NNP) at Market Price is 11,01,350.

Answer

Firstly we know that ,using expenditure method we get GDP at Market price , so we have 1+2+3+(4-5) = 1,08,000 + 11,00,000+2000 +(9000) = 12,01,000 A) GNP at market price = GDPmp +NFIA = 12,01,000+750 = 12,01,750 B) NNPmp =GNPmp - dep.= 12,01,750 - 400 = 12,01,350 Thats all

Answer

Thx:-)

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