Calculation of GNP MP by Expenditure Method

Calculation of GNP MP by Expenditure Method

Step 1

We calculate National Income (NNP FC)

Step 2

We add Depreciation to get GNP FC

Step 3

We add Net Indirect Tax to arrive at GNP MP

Example

Calculate GNP MP With following Data

Net indirect Taxes 200,Depreciaton 100,Profit 20,Rent 10,Mixed Income 30Royalty 50,Interest 30,Compenaton to employees 40,

Answer

Example 21.

Calculate GNP at MP from the following data:

Answer

In this question, we are not given Profit

So we will first calculate Profit

Then we will calculate

Step 1

Calculate Profit

Profit =Dividend +Savings of Corporate Sector + income Tax

Profit = 500 + 400 + 0 = 900

*assume Income tax to be 0

Step 2

Calculate National Income and GNP MP

Question 18

Calculate GNP at MP.

Answer

Question 19.

Calculate GNP at MP.

Answer

Question 20.

Calculate "Gross National Product at Market Price" from the following data:

Answer