calculate gross national product at market price from the following data by (a) income method and (b) expenditure method :- mixed income of self-employed = 800, corporation tax = 50 , interest =100 , rent = 80 , undistributed profits = 150 , dividends =70 , employers' contribution to social security schemes = 120 , compensation of employees = 1,200 ,government final consumption expenditure =730, private final consumption expenditure =1580, net factor income to abroad = 20, gross capital formation = 300 , change in stocks = 40, net indirect taxes =100 , current replacement =50, net exports = (-10)

Dear Student,

Computation of Gross National Product at Market Price (GNP at MP)
Income Method:
GNP at MP = Compensation of employees + Mixed Income of Self-Employed + Corporation Tax + Undistributed Profits + Dividends + Interest + Rent + Current Replacement + Net Indirect Taxes – Net Factor Income to Abroad

GNP at MP = 1200 + 800 + 50 + 150 + 70 + 100 + 80 + 50 + 100 – 20
                   = 2,580

Expenditure Method:
GNP at MP = Government Final Consumption Expenditure + Private Final Consumption Expenditure + Gross Capital Formation + Net Exports – Net Factor Income to Abroad
GNP at MP = 730 + 1,580 + 300 + (–10) – 20 
                   = 2,580
                   
Notes: (i) Employers' Contribution to Social Security Schemes is already included in Compensation of Employess
           (ii) Gross Capital Formation already includes Change in Stock

Regards