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.
Frequently asked questions
What is the correct answer to this question?
2500 crore rupees
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
