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Market Distortions

Determine the...

Question

Determine the missing items in the following cases:
(i) $G N P_{F C} = G N P_{M P} - ?$
(ii) $? =$ National Income $-$ Domestic Income
(iii) $G D P_{F C} = ? +$ Depreciation
(iv) $N D P_{F C} = ? -$ Depreciation $-$ Net Indirect Tax

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Solution

(i) Net Indirect Taxes
(ii) Net Factor Income from Abroad
(iii) $N D P F C$
(iv) $G D P M P$

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Q. Mention the situation in which following equations will hold true:
(i) National Income

=

Domestic Income
(ii)

G D P_{F C} > G D P_{M P}

N N P_{F C} < N D P_{F C}

G D P_{F C} = G D P_{M P}

(v) Domestic Income is greater than National Income.

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

Q. From the following information, compute

G N P_{M P}

.

G D P_{F C} = R s . 3, 000

; Net factor income to abroad

= R s . 200

= R s . 420

= R s . 200

Q. Calculate (a) National Income, and (b) Net National Disposable Income. (Rs in crores)
(i) Compensation of employees 2,000
(ii) Rent 400
(iii) Profit 900
(iv) Dividend 100
(v) Interest 500
(vi) Mixed income of self-employed 7,000
(vii)Net factor income to abrorad 50
(viii)Net exports 60
(ix) Net indirect taxes 300
(x) Depreciation 150
(xi) Net current transfers to abroad 30

Q. 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.

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