CameraIcon

SearchIcon

MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Taxation and Types of Taxes

Are the follo...

Question

Are the following a part of a country's 'net domestic product at market price'? Explain.
(i) Net indirect taxes
(ii) Net exports
(iii) Net factor income from abroad
(iv) Consumption of fixed capital.

Open in App

Solution

(i) Yes, net indirect taxes will be included because market price $=$ Factor cost $+$ Net indirect taxes.
(ii) Yes, net exports (a component of expenditure method) will be included as It includes goods an services produced within the domestic territory of a country.
(iii) No, it will not be included as $N D P_{M P}$ is confined to domestic product only
(iv) No, it will not be included because Net Domestic Product $=$ Gross Product $-$ Consumption of Fixed Capital.

Suggest Corrections

thumbs-up

1

Similar questions

Q. Calculate National Income or NNP at FC:

Particulars	Rs. in crores
(i) GDP at MP (ii) Indirect Taxes (iii) Net Factor income from abroad (iv) Consumption of Fixed Capital (v) Subsidies	4,800 300 80 200 60

Q. Calculate (a) Net National Product at market price, and (b) Gross Domestic Product at factor cost.

(i) Rent and interest	(Rs. in crores) $6, 000$
(ii) Wages and salaries	$1, 800$
(iii) Undistributed profit	$400$
(iv) Net indirect taxes	$100$
(v) Subsidies	$20$
(vi) Corporation tax	$120$
(vii) Net factor income to abroad	$70$
(viii) Dividends	$80$
(ix) Consumption of fixed capital	$50$
(x) Social security contribution by employers	$200$
(xi) Mixed income	$1, 000$

Q. From the following data, calculate National Income by Income method and Expenditure method:

	Item	Rs. in crores
(i)	Compensation of employees	700
(ii)	Government final consumption expenditure	750
(iii)	Net factor income from abroad	(-) 10
(iv)	Net exports	(-) 15
(v)	Profits	600
(vi)	Net indirect taxes	60
(vii)	Mixed income of self-employed	350
(viii)	Rent	200
(ix)	Interest	310
(x)	Private final consumption expenditure	1100
(xi)	Net domestic capital formation	385
(xii)	Consumption of fixed capital	65

Q. Calculate (a) Domestic Income; (b) National Income

Particulars	Rs. in crores
(i) GDP at MP (ii) Indirect Taxes (iii) Factor income from abroad (iv) Consumption of Fixed Capital (v) Factor income to abroad (vi) Subsidies	70,150 5,200 800 3,100 300 4,000

Q. Calculate the Domestic Income:

Particulars	Rs. in crores
(i) Gross national product at market price (ii) Indirect Tax (iii) Subsidies (iv) Depreciation (v) Net Factor income from abroad	58,350 2,590 1,540 1,625 -240

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Types of Taxes

MATHEMATICS

Watch in App

explore_more_icon

Explore more

Taxation and Types of Taxes

Standard IX Mathematics

Join BYJU'S Learning Program

CrossIcon