To determine the Gross Domestic Product at Market Price (GDPmp) and Factor Income to Abroad, let's approach the solution step-by-step using the given data.
### (a) Gross Domestic Product at Market Price (GDPmp)
To calculate the Gross Domestic Product at Market Price (GDPmp), we use the following formula:
[tex]\[ \text{GDPmp} = \text{Gross National Product at Factor Cost (GNPfc)} + \text{Net Indirect Tax} - \text{Factor Income from Abroad} + \text{Depreciation} + \text{Change in Stock} \][/tex]
Given data:
- Gross National Product at Factor Cost (GNPfc) = 1,260 crore
- Net Indirect Tax = 140 crore
- Factor Income from Abroad = 40 crore
- Depreciation = 70 crore
- Change in Stock = 30 crore
Substitute these values into the formula:
[tex]\[ \text{GDPmp} = 1,260 + 140 - 40 + 70 + 30 \][/tex]
[tex]\[ \text{GDPmp} = 1,460 \text{ crore} \][/tex]
### (b) Factor Income to Abroad
To calculate the Factor Income to Abroad, we understand that it will balance the Gross National Product at Factor Cost (GNPfc), ensuring the equality of resources used domestically.
First, let's calculate the total domestic expenditure, which includes:
- Private Final Consumption Expenditure = 770 crore
- Government Final Consumption Expenditure = 270 crore
- Net Domestic Fixed Capital Formation = 220 crore
- Net Imports (exports are lesser, indicated by a negative value) = -60 crore
Sum these up:
[tex]\[ \text{Total Domestic Expenditure} = 770 + 270 + 220 - 60 \][/tex]
[tex]\[ \text{Total Domestic Expenditure} = 1,200 \text{ crore} \][/tex]
Given the formula of GNPfc:
[tex]\[ \text{GNPfc} = \text{GDPmp} + \text{Factor Income from Abroad} - \text{Factor Income to Abroad} \][/tex]
[tex]\[ 1,260 = 1,460 + 40 - \text{Factor Income to Abroad} \][/tex]
Re-arrange to solve for Factor Income to Abroad:
[tex]\[ \text{Factor Income to Abroad} = 1,460 + 40 - 1,260 \][/tex]
[tex]\[ \text{Factor Income to Abroad} = 240 \text{ crore} \][/tex]
However, note that since we're balancing the national expenditure vs. the domestic expenditure to ensure the equivalent market, we can simplify further:
[tex]\[ \text{Factor Income to Abroad} = \text{Factor Income from Abroad} - (\text{Total Net Domestic Expenditure} - \text{Total Domestic Expenditure} )\][/tex]
So,
[tex]\[ \text{Factor Income to Abroad} = 40 - (1,460 - 1,200) \][/tex]
[tex]\[ \text{Factor Income to Abroad} = 40 - 260 \][/tex]
[tex]\[ \text{Factor Income to Abroad} = -260 \text{ crore} \][/tex]
So, from the above calculations, we can conclude:
- (a) Gross Domestic Product at Market Price (GDPmp) = 1,460 crore
- (b) Factor Income to Abroad = -260 crore
