To calculate GDP at Factor Cost, we use the value-added approach. This involves summing the value added by each firm, where value added is the value of output minus the value of intermediate inputs. Then, we adjust for Net Indirect Taxes to obtain GDPFC.
Step 1: Calculate Value of Output for Each Firm
Step 2: Calculate Intermediate Inputs for Each Firm
Step 3: Calculate Value Added by Each Firm
Value Added = Value of Output − Value of Intermediate Inputs
Step 4: Calculate GDP at Market Price (GDPMP)
GDPMP = Sum of Value Added by all firms
= ₹2,100 (Firm A) + ₹2,600 (Firm B) + ₹1,000 (Firm C) = ₹5,700
Step 5: Calculate GDP at Factor Cost (GDPFC)
GDPFC = GDPMP − Net Indirect Taxes
= ₹5,700 − ₹240 = ₹5,460
The Gross Domestic Product at Factor Cost (GDPFC) is ₹5,460.
On the basis of the given data, estimate the value of Net Domestic Product at Factor Cost (NDPFC):
S.No. | Items | Amount (in ₹ Crore) |
(i) | Household Consumption Expenditure | 1,800 |
(ii) | Gross Business Fixed Capital Formation | 1,150 |
(iii) | Gross Residential Construction Expenditure | 1,020 |
(iv) | Government Final Consumption Expenditure | 2,170 |
(v) | Excess of Imports over Exports | 720 |
(vi) | Inventory Investments | 540 |
(vii) | Gross Public Investments | 1,300 |
(viii) | Net Indirect Taxes | 240 |
(ix) | Net Factor Income from Abroad | -250 |
(x) | Consumption of Fixed Capital | 440 |
S. No. | Particulars | Amount (in ₹ lakh) |
---|---|---|
(i) | Gross Domestic Product at Factor Cost | 2200 |
(ii) | Subsidies | 50 |
(iii) | Indirect Taxes | 70 |
(iv) | Net Factor Income from Abroad | 100 |
(v) | Consumption of Fixed Capital | 150 |
(vi) | Net Exports | 40 |
Carefully observe the below print and answer the following questions based on your course of study:
Express in brief the feelings and emotions you derive after observing this graphic print.
Identify the print and name its printmaker and the title.
Elaborate on the compositional arrangement and use of figures in this print.