Question

\[ \begin{array}{|c|l|r|} \hline \textbf{S.No.} & \textbf{Items} & \textbf{Amount (₹ crore)} \\ \hline (i) & \text{Wages and Salaries} & 2,000 \\ \hline (ii) & \text{Rent and Interest} & 700 \\ \hline (iii) & \text{Corporate Tax} & 500 \\ \hline (iv) & \text{Undistributed Profit} & 300 \\ \hline (v) & \text{Consumption of Fixed Capital} & 200 \\ \hline (vi) & \text{Dividend} & 150 \\ \hline (vii) & \text{Net Factor Income from Abroad} & -50 \\ \hline \end{array} \]

Hint:

For \(GNP_{FC}\), include all factor incomes (domestic and net abroad) and avoid adding non-factor items like depreciation.

Answer 1

The Gross National Product at Factor Cost (\(GNP_{FC}\)) is calculated as follows: \[ GNP_{FC} = Wages \& Salaries + Rent \& Interest + Corporate Tax + Undistributed Profit + Dividend + Net Factor Income { from Abroad} \] With the provided values, the calculation is: \[ GNP_{FC} = 2000 + 700 + 500 + 300 + 150 - 50 = ₹3,800 { crore}. \]