Calculate the NNP (in crore) at market price from the given data.
| Particulars | Value (in crore) |
| NDP at factor cost | (-) 581 |
| 1,25,250 | 18,120 |
| Net income from aboard | Net indirect taxes |
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 1,42,789.
To calculate the Net National Product (NNP) at market price, we need to use the following formula:
NNP at Market Price=NDP at Factor Cost+Net Income from Abroad+Net Indirect Taxes
Given the values:
NDP at Factor Cost = 1,25,250 crore
Net Income from Abroad = (-) 581 crore (which means a net outflow of 581 crore)
Net Indirect Taxes = 18,120 crore
Let's plug these values into the formula:
NNP at Market Price = 1,25,250+(−581)+18,120
NNP at Market Price = 1,25,250−581+18,120
NNP at Market Price = 1,24,669+18,120
NNP at Market Price = 1,42,789
Therefore, the NNP at market price is 1,42,789 crore.