Please answer this..
Dear Student
G.N.P. on the basis of market price = Rs.50,000
National income of a country=N.N.P. on the basis of factor cost
N.N.P. on the basis of factor cost=G.N.P. on the basis of market price - Depreciation -Net Indirect Tax
= Rs.50,000-0-0
=Rs.50,000
Hence, the national income for the country is Rs.50,000.
Note:As GNP include all the final expenditure ,therefore,expenditure on installation of machinery is not considered while calculating national income for the country.
Regards
G.N.P. on the basis of market price = Rs.50,000
National income of a country=N.N.P. on the basis of factor cost
N.N.P. on the basis of factor cost=G.N.P. on the basis of market price - Depreciation -Net Indirect Tax
= Rs.50,000-0-0
=Rs.50,000
Hence, the national income for the country is Rs.50,000.
Note:As GNP include all the final expenditure ,therefore,expenditure on installation of machinery is not considered while calculating national income for the country.
Regards