An old machine is sold for ₹15 lakh. An agent receives a commission of ₹50,000, and a current repair service worth ₹80,000 is provided. How much is included in current NDP?
Answer and explanation
Correct answer: ₹1,30,000 / 1 lakh 30 thousand rupees
The sale price of the old machine is not counted as current production because the machine was produced in an earlier period. However, the agent’s current brokerage service and the current repair service are newly produced services. Thus, current NDP includes ₹50,000 + ₹80,000 = ₹1,30,000, while the second-hand machine’s price is excluded.
Frequently asked questions
What is the correct answer to this question?
₹1,30,000 / 1 lakh 30 thousand rupees
Why is this the correct answer?
The sale price of the old machine is not counted as current production because the machine was produced in an earlier period. However, the agent’s current brokerage service and the current repair service are newly produced services. Thus, current NDP includes ₹50,000 + ₹80,000 = ₹1,30,000, while the second-hand machine’s price is excluded.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates.
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