Aggregates related to national income - NDP

Correct answer: C. ₹11,600 crore

Explanation: The governing identities are GDP = NDP + depreciation and market price = factor cost + net indirect taxes. Therefore, GDP at market price = ₹10,300 + ₹800 + ₹500 = ₹11,600 crore. Option C is correct because both required adjustments are added. Option A omits net indirect taxes, while B and D use incorrect totals.

Correct answer: B. ₹12,200 crore

Explanation: To move from national to domestic product, subtract net factor income from abroad: GDP at market price = ₹13,500 − ₹400 = ₹13,100 crore. To move from gross to net, subtract depreciation: NDP at market price = ₹13,100 − ₹900 = ₹12,200 crore. Thus option B is correct; the other values result from omitting or mishandling one adjustment.

Correct answer: D. ₹16,200 crore

Explanation: First convert NNP at factor cost to NDP at factor cost by subtracting NFIA: NDP at factor cost = ₹15,000 − (−₹500) = ₹15,500 crore. A negative NFIA increases the domestic figure because income flows outward from the country. Add net indirect taxes to change factor cost to market price: ₹15,500 + ₹700 = ₹16,200 crore. Option D is correct.

Correct answer: A. ₹15,700 crore and ₹16,050 crore

Explanation: Net indirect taxes equal indirect taxes minus subsidies: ₹1,300 − ₹400 = ₹900 crore. First remove depreciation and net indirect taxes from GDP at market price: NDP at factor cost = ₹18,000 − ₹1,400 − ₹900 = ₹15,700 crore. Add NFIA to obtain national income: ₹15,700 + ₹350 = ₹16,050 crore. Therefore option A is correct.

Correct answer: B. ₹13,400 crore

Explanation: The governing relationships are GDP at market price = NDP at factor cost + depreciation + net indirect taxes. Substituting the values gives GDPMP = 12,600 + 950 + (−150) = ₹13,400 crore. Thus option B is correct. Because net indirect taxes are negative, they reduce the result by ₹150 crore. Options A, C and D result from mishandling the negative sign or adding the wrong adjustment.

Correct answer: B. ₹16,100 crore

Explanation: To convert GNP at market price into GDP at market price, subtract net factor income from abroad: GDPMP = GNPMP − NFIA = 17,000 − (−300) = ₹17,300 crore. Then subtract depreciation to obtain NDPMP: 17,300 − 1,200 = ₹16,100 crore. Therefore option B is correct. The negative NFIA increases GDP relative to GNP; ignoring that sign produces a wrong answer.