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If compensation of employees is 1300 crore rupees, operating surplus is 780 crore rupees and mixed income is 420 crore rupees, then what is NDP at factor cost?

Answer and explanation

Correct answer: 2500 crore rupees

The income method measures NDP at factor cost by adding the factor incomes generated in domestic production: compensation of employees, operating surplus and mixed income. Hence NDP at factor cost = 1,300 + 780 + 420 = 2,500 crore rupees. Option B is correct. The other choices reflect incomplete addition or an unjustified extra amount; no depreciation or net factor income adjustment is required for this stated aggregate.

Related tags

EconomicsNdp At Factor CostFactor IncomesIncome MethodGdp And WelfareNational Income And Related AggregatesClass 11 Mcq

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