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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


Team Careers360 6th Jan, 2024
Answer (1)
Team Careers360 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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