Question

Suppose the GDP at a market price of a country in a particular year was Rs 1,100 crores. Net: factor Income from Abroad was Rs 100 crores. The value 1. 2. 3. 4. 5. of Indirect taxes − Subsidies was Rs 150 crores and National Income was Rs 850 crores. Calculate the aggregate value of depreciation.

Options

• 200 crores

• 300 crores

• 100 crores

• None of the above

Answer 1

200 crores

Explanation:

 National Income (NNP_FC) = Rs.850 crores

GDP_MP = Rs.1100 crores

International net factor income = Rs.100 crores

Net indirect taxes = Rs.150 crores

NNP_FC = GDP_MP + Net factor income from abroad − Depreciation − Net indirect taxes

Adding these numbers to the formula,

850 = 1100 + 100 − Depreciation − 150

⇒ 850 = 1100 − 50 − Depreciation

⇒ 850 = 1050 − Depreciation

⇒ Depreciation = 1050 − 850 = Rs.200 crores

So, depreciation is Rs.200 crores