The following table shows the national income data for an economy with a population of 75 million.
Net property income from abroad
Taxes on expenditure
1. a) Gross domestic product at market price
b) Gross national product at market price
c) Gross national product at factor cost
d) National income
Expenditure Method; GDP MP= C+I+G+(X—M) Here; 1. GDPMP= Private consumption +( public investment+ corporate investment) + government expenditure + net export ; or , GDP MP= 95500+(32500+42250)+15275++(–2250) = 183275
2. GNP MP= GDPMP+ net property income from abroad) or, GNP MP= 183275+(—17252) = 166,023
(Difference between domestic income and national income is of net factors income from abroad)
3. GNP FC = GNPMP‐ ( indirect tax —subsidies) or GNP FC= 166023 –( 18500—12150) = 166023—6350=159,673
( Difference between factor cost and market price is of net indirect taxes , I.e indirect taxes —subsidies)
4. National Income (NNPFC)= GNPFC— depreciation = 159673–12750= 146,923
(Difference between gross and net value of a parameter is of ' depreciation ')
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