question_answer

Find out (a) Gross National Product at Market Price and (b) Net Current Transfers to Abroad:
(Rs. crores)
(i)	Private final consumption expenditure	1,000
(ii)	Depreciation	100
(iii)	Net national disposable income	1,500
(iv)	Closing stock	20
(v)	Government final consumption expenditure	300
(vi)	Net indirect tax	50
(vii)	Opening stock	20
(viii)	Net domestic fixed capital formation	110
(ix)	Net exports	15
(x)	Net factor income to abroad	(-) 10

Answer:

(a) \[GN{{P}_{MP}}\]

= Private final consumption expenditure + Government final consumption expenditure + (Net domestic fixed capital formation + Closing stock - Opening stock + Depreciation) + Net exports - Net factor income to abroad.

= (i) + (v) + [(viii) + (iv) - (vii) + (ii)] + (ix) - (x)

\[=1,000+300+110+20-20+100+15-(-10)\]

\[=1,300+210+15+10=Rs.\text{ }1.535\text{ }crore\]

(b) Net Current Transfers to Abroad

= \[GN{{P}_{MP}}\] - Depreciation - Net national disposable income

= \[GN{{P}_{MP}}\] - (ii) - (iii)

\[=1,535-100-1,500\]

= Rs. (-) 65 crore