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Calculate GNP MP
  1. compensation of employees 2000
  2. interest 500
  3. rent 700
  4. profits 800
  5. employers contribution to social security schemes 200
  6. dividends 300
  7. consumption of fixed capital 100
  8. net indirect taxes 250
  9. net exports 70
  10. net factor income to abroad 150
  11. mixed income 1500

firstly find NDPfc using income method.

NDP fc= COE + Operating Surplus ( Interest + rent + profits) + Mixed Income.
= 2000 + 500 + 700 + 800 + 1500
= 5500

GNP mp = NDPfc + Depreciation -NFI to A+ NIT
= 5500 + 100 - 150 + 250
= 5600 + 100
= 5700

Hope it helps :D
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  • 2
Welcome :)
  • 1
Why is dividend not taken into account??
  • 5
Hello Pratiksha Singh... Actually dividend is a part of profit and we kniw that profit comes under operating surplus so in our ques profit is given to us directly so there is no need to add it again if we do so it would lead to double counting. Thank you
  • 9
Hey ! This question provided us with netflix chords income TO abroad. How do we calculate gnp at mp without net factor income FROM abroad?
  • 4
Why is net factor income TO abroad provided while we need net factor income FROM abroad to calculate gnp at mp?
  • 2
Answer it

  • 1
compensation of employees = 2000 (A) 
operating surplus =interest + rent+ profit  
                             500+700+800
                           2000 (B)
Mixed income =1500 (C)
NDPATFC= A+B+C
                 2000+2000+1500
                  = 5500 crores 
NOW 
GNPATMP=NDPATFC+ DEP + NFIA +NIT 
                 5500+1000+250+(-150)
                 5500+1000+100
                   5700 crores 
  • -1
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