Private final consumption expenditure is ₹6,200 crore, government final consumption expenditure is ₹1,800 crore, net domestic capital formation is ₹1,100 crore and net exports are minus ₹300 crore. What is NDP at market price?
Answer and explanation
Correct answer: ₹8,800 crore
Use the expenditure identity NDP at market price = PFCE + GFCE + NDCF + net exports. Substitution gives ₹6,200 + ₹1,800 + ₹1,100 + (−₹300) = ₹8,800 crore. Therefore, option C is correct. The negative net-export figure must be subtracted because imports exceed exports; adding ₹300 crore would incorrectly produce ₹9,400 crore.
Frequently asked questions
What is the correct answer to this question?
₹8,800 crore
Why is this the correct answer?
Use the expenditure identity NDP at market price = PFCE + GFCE + NDCF + net exports. Substitution gives ₹6,200 + ₹1,800 + ₹1,100 + (−₹300) = ₹8,800 crore. Therefore, option C is correct. The negative net-export figure must be subtracted because imports exceed exports; adding ₹300 crore would incorrectly produce ₹9,400 crore.
Which subject and chapter does this question cover?
This is a Class 12 Economics question. Chapter: National Income and Related Aggregates. Topic: Aggregates related to national income - NDP.
Student feedback
Was this question useful?
👍 0 Helpful 👎 0 Not helpful
Yes 0% No 0%
0 responsesStudent Reviews
No published reviews yet.
