Question

Study the following table and answer the questions:

Components	Crores (₹)
Consumption expenditure (C)	1000
Investment expenditure (I)	1200
Government expenditure (G)	500
Net exports (X - M)	`square`
Gross Domestic Product	2500
Depreciation (D)	`square`
Net Domestic Product	2350

Questions:

1. Calculate the value of net exports on the basis of the above table.
2. Calculate the value of depreciation on the basis of the above table.

Answer 1

Components	Crores (₹)
Consumption expenditure (C)	1000
Investment expenditure (I)	1200
Government expenditure (G)	500
Net exports (X - M)	-200
Gross Domestic Product	2500
Depreciation (D)	150
Net Domestic Product	2350

1. GDP  = C + I + G + (X - M)
   ∴ (X - M) = GDP  - (C + I + G)
   ∴ (X - M) = 2500  - (1000 + 1200 + 500)
   ∴ (X - M) = 2500 - (2700)
   ∴ (X - M) = -200
   ∴ The value of net exports (X - M) = -200 Crores (₹)
2. NDP = GDP - Depreciation (D)
   ∴ Depreciation (D) = GDP - NDP
   ∴ Depreciation (D) = 2500 - 2350
   ∴ Depreciation (D) = 150
   ∴ The value of depreciation (D) = 150 Crores (₹)