Please give me the answer of the following question.
Q15. Calculate
(a) Gross domestic product at market price and
(b) Factor income from abroad from the following data.
Dear Student
Regards
a) Gross Domestic Product at Market Price ( GDPMP )
= Compensation of employees + ( Profit+rent+interest) +(Gross fixed capital formation +change in stock - net domestic capital formation ) + net indirect taxes
= 3000 + (1300+800+900)+(850+50-800)+300
=3000+3000+100+300 = 6400
b) Gross National Product at factor cost = GDPMP - net indirect taxes +factor income from abroad - factor income to abroad
Therefore , Factor income from abroad = 6150 - 6400 + 300 + 80 = 6530-6400 = 130
= Compensation of employees + ( Profit+rent+interest) +(Gross fixed capital formation +change in stock - net domestic capital formation ) + net indirect taxes
= 3000 + (1300+800+900)+(850+50-800)+300
=3000+3000+100+300 = 6400
b) Gross National Product at factor cost = GDPMP - net indirect taxes +factor income from abroad - factor income to abroad
Therefore , Factor income from abroad = 6150 - 6400 + 300 + 80 = 6530-6400 = 130
Regards