Calculation of GNP MP by Expenditure Method
Step 1
We calculate National Income (NNP FC)
Step 2
We add Depreciation to get GNP FC
Step 3
We add Net Indirect Tax to arrive at GNP MP
Example
Calculate GNP MP With following Data
Net indirect Taxes 200,Depreciaton 100,Profit 20,Rent 10,Mixed Income 30Royalty 50,Interest 30,Compenaton to employees 40,
Answer
Example 21.
Calculate GNP at MP from the following data:
| Particulars | ₹ in Crores |
| (i) Net indirect tax | 900 |
| (ii) Depreciation | 400 |
| (iii) Net Factor income from abroad | -20 |
| (iv) Rent | 1,000 |
| (v) Dividend | 500 |
| (vi) Mixed Income | 200 |
| (vii) Saving of private corporate sector | 400 |
| (viii) Interest | 200 |
| (ix) Compensation of employees | 100 |
Answer
In this question, we are not given Profit
So we will first calculate Profit
Then we will calculate
Step 1
Calculate Profit
Profit =Dividend +Savings of Corporate Sector + income Tax
Profit = 500 + 400 + 0 = 900
*assume Income tax to be 0
Step 2
Calculate National Income and GNP MP
Question 18
Calculate GNP at MP.
| Particulars | ₹ in crores |
| (i) Employee Compensation | 600 |
| (ii) Rent and interest | 350 |
| (iii) Profit | 200 |
| (iv) Indirect Tax | 160 |
| (v) Consumption of fixed capital | 200 |
| (vi) Mixed Income of the self-employed | 850 |
| (vii) Subsidies | 40 |
| (viii) Net current transfers from rest of the world | 850 |
| (ix) Net Factor income from abroad | (-)100 |
Answer
Question 19.
Calculate GNP at MP.
| Particulars | ₹ in crores |
| (i) Indirect tax | 200 |
| (ii) Consumption of fixed capital | 100 |
| (iii) Factor Income to abroad | 250 |
| (iv) Factor Income from abroad | 320 |
| (v) Rent | 250 |
| (vi) Dividend | 220 |
| (vii) Mixed Income | 120 |
| (viii) Saving of private corporate sector | 200 |
| (ix) Interest | 100 |
| (x) Subsidies | 200 |
| (xi) Compensation of employees | 500 |
| (xii) Corporate tax | 400 |
Answer
Question 20.
Calculate "Gross National Product at Market Price" from the following data:
| Particulars | ₹ in crores |
| (i) Compensation of employees | 2,000 |
| (ii) Interest | 500 |
| (iii) Rent | 700 |
| (iv) Profits | 800 |
| (v)Employers' contribution to social security schemes | 201 |
| (vi) Dividends | 300 |
| (vii) Consumption of fixed capital | 100 |
| (viii) Net indirect taxes | 250 |
| (ix) Net exports | 70 |
| (x) Net factor income to abroad | 150 |
| (xi) Mixed income of self-employed | 1,500 |
Answer
