Question : Calculate NDP at FC by expenditure method.
| Particulars | Rs. in crore |
| Gross fixed capital formation | 150 |
| Private final consumption expenditure | 210 |
| Mixed income | 200 |
| Net factor income from ROW | -20 |
| Exports | 20 |
| Imports | 10 |
| Compensation of employees | 250 |
| Government final consumption expenditure | 70 |
| Consumption of fixed capital | 40 |
| Indirect tax | 20 |
| Subsidies | 20 |
| Rent, interest and profit | 30 |
| Change in stock | 50 |
| Interest on national debt | 100 |
Option 1: 400
Option 2: 450
Option 3: 500
Option 4: None of the above
Answer (1)
23rd Jan, 2024
Correct Answer: 450
Solution :
NDP at FC = Gross fixed capital formation + government final consumption expenditure + private final consumption expenditure + (exports-imports) + change in stock - consumption of fixed capital - (indirect taxes - subsidies)
= 150+70+210+(20-10)+50-40-(20-20)
= Rs. 450 crore.
Hence, Option B is correct.
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