home > Sample Assignment > Economics Homework Assignment > Gross Domestic Product

Gross Domestic Product Sample Assignment

Calculate (a) gross domestic product at market prices by income method and (b) by expenditure method from the following data. Also calculate GDP_FC, GNP_MP, NNP_FC and NNP_MP.

---

                                                                                                                            Rs. in Croces

---

(i)    Compensation of employees                                                                  13,363      
(ii)    Government  final consumption expenditure                                              3,801
(iii)    Indirect taxes                                                                                        3,864
(iv)    Gross fixed capital formation                                                                   6,305
(v)    Mixed income of the self-employed                                                         16,112
(vi)    Interest, rent android                                                                               5,044
(vii)    Change in stocks                                                                                   1,039                         
(viii)   Exports of goods and services                                                                 1,771
(ix)    Imports of goods and services                                                                  1,816
(x)    Private final consumption expenditure                                                     29,163
(xi)    Net factor income from abroad Subsidies                                                (-) 284
(xii)   Subsidies                                                                                                 337
(xiii)  Consumption of fixed capital                                                                    2,21 7

---

Solution:

(a)Gross domestic product at market     = Compensation of employees + Operating
                                                               Surplus (interest, rent and profit)+Mixed
                                                               Income of self-employed + Consumption of
                                                               Fixed capital + Indirect taxes- Subsidies
                                                           =  13,363 + 5,044 +16,112 + 2,217 +3, 864
                                                               - 337 = 40,263 (Rs. In crores)
(b)Gross domestic product at market      = Government final consumption expenditure
     Prices (by expenditure method)            +Private final consumption expenditure +
                                                               Gross fixed capital formation +Change in
                                                                Stocks + Exports of goods and services-
                                                                Imports of goods and services
                                                            =   3,801 + 29,163 +6,305 + 1,039 +1,771
                                                                 - 1,816 =40,263 (Rs in crores)
                                                GDP_FC  = GDP_MP- Indirect taxes +Subsidies
                                                            = 40,263-3,864 +337 =Rs. 36,736 crores.
                                                 GNP_MP= GDP_MP +NFIA
                                                            = 40,263 +(-284) =Rs, 39,979 crires
                                                 NNP_FC=GDP_FC +NFIA –Depreciation
                                                           = 36,736 + (-284) -2.217
                                                           = Rs. 34,235 crores.
                                                 NNP_MP=GNP_MP – Depreciation
                                                            = 39,979 – 2,217 = Rs 37,762 crores.

Other Sample Assignments in Economics Homework Assignment :

Manufacturer Production Function	Price Elasticity Of Supply
Equalization Of Wages	Equilibrium Price Of Commodity
Poverty In India	Gross National Product
Consumption At Different Levels	Gross Domestic Product
Investment Decision	Expected Raturn
Level Of Income	Saving Equation
Equilibrium Level of Income	Equilibrium Level of National
Equilibrium GDP	Equilibrium level of GDP
Autonomous Investment	Calculate The Equilibrium GDP
Government Expenditure	Equilibrium Gdp Of Economy
Hypothetical Information	Equilibrium GDP Government
Equilibrium Level Of Inceome	Equation For Monetary Equilibrium
Calculate Saving Function	Equilibrim Level Of Income
Regardless Of The Level Of Income

---

---