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Suppose GDP MP of an economy is Rs 200000 and its capital stock is worth Rs 3 lakh capital stock depreciate at 20% per annum, indirect tax is 40000 and subsidies 16000 .find the value of domestic income.?
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Suppose GDP MP of an economy is Rs 200000 and its capital stock is wor...
Calculation of Domestic Income
Gross Domestic Product at Market Price (GDP MP): Rs 200,000
- This represents the total value of all goods and services produced in the economy.
Depreciation of Capital Stock: 20%
- Capital stock worth Rs 3,00,000 depreciates at 20% per annum.
- Depreciation amount = 20% of Rs 3,00,000 = Rs 60,000.
Net Domestic Product at Factor Cost (NDP FC)
- NDP FC = GDP MP - Depreciation
- NDP FC = Rs 200,000 - Rs 60,000
- NDP FC = Rs 140,000
Indirect Tax: Rs 40,000
- Indirect taxes are taxes levied on the production or sale of goods and services.
- These taxes are included in the final price paid by the consumer.
Subsidies: Rs 16,000
- Subsidies are payments made by the government to support certain industries or groups.
- They reduce the production cost and help in promoting economic activities.
Domestic Income Calculation
- Domestic Income = NDP FC + Subsidies - Indirect Tax
- Domestic Income = Rs 140,000 + Rs 16,000 - Rs 40,000
- Domestic Income = Rs 116,000
Therefore, the value of domestic income in the economy is Rs 116,000. This represents the total income generated within the country after accounting for depreciation, indirect taxes, and subsidies.
Gross Domestic Product at Market Price (GDP MP): Rs 200,000
- This represents the total value of all goods and services produced in the economy.
Depreciation of Capital Stock: 20%
- Capital stock worth Rs 3,00,000 depreciates at 20% per annum.
- Depreciation amount = 20% of Rs 3,00,000 = Rs 60,000.
Net Domestic Product at Factor Cost (NDP FC)
- NDP FC = GDP MP - Depreciation
- NDP FC = Rs 200,000 - Rs 60,000
- NDP FC = Rs 140,000
Indirect Tax: Rs 40,000
- Indirect taxes are taxes levied on the production or sale of goods and services.
- These taxes are included in the final price paid by the consumer.
Subsidies: Rs 16,000
- Subsidies are payments made by the government to support certain industries or groups.
- They reduce the production cost and help in promoting economic activities.
Domestic Income Calculation
- Domestic Income = NDP FC + Subsidies - Indirect Tax
- Domestic Income = Rs 140,000 + Rs 16,000 - Rs 40,000
- Domestic Income = Rs 116,000
Therefore, the value of domestic income in the economy is Rs 116,000. This represents the total income generated within the country after accounting for depreciation, indirect taxes, and subsidies.
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Suppose GDP MP of an economy is Rs 200000 and its capital stock is worth Rs 3 lakh capital stock depreciate at 20% per annum, indirect tax is 40000 and subsidies 16000 .find the value of domestic income.?
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Suppose GDP MP of an economy is Rs 200000 and its capital stock is worth Rs 3 lakh capital stock depreciate at 20% per annum, indirect tax is 40000 and subsidies 16000 .find the value of domestic income.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Suppose GDP MP of an economy is Rs 200000 and its capital stock is worth Rs 3 lakh capital stock depreciate at 20% per annum, indirect tax is 40000 and subsidies 16000 .find the value of domestic income.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Suppose GDP MP of an economy is Rs 200000 and its capital stock is worth Rs 3 lakh capital stock depreciate at 20% per annum, indirect tax is 40000 and subsidies 16000 .find the value of domestic income.?.
Suppose GDP MP of an economy is Rs 200000 and its capital stock is worth Rs 3 lakh capital stock depreciate at 20% per annum, indirect tax is 40000 and subsidies 16000 .find the value of domestic income.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Suppose GDP MP of an economy is Rs 200000 and its capital stock is worth Rs 3 lakh capital stock depreciate at 20% per annum, indirect tax is 40000 and subsidies 16000 .find the value of domestic income.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Suppose GDP MP of an economy is Rs 200000 and its capital stock is worth Rs 3 lakh capital stock depreciate at 20% per annum, indirect tax is 40000 and subsidies 16000 .find the value of domestic income.?.
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