Question 20
MediumOriginal questionAn economy's spending data for a year:
| Item | ₹ crore |
|---|---|
| Private final consumption expenditure | 600 |
| Government final consumption expenditure | 150 |
| Gross fixed capital formation | 200 |
| Change in stocks | 20 |
| Exports | 80 |
| Imports | 100 |
What is GDP at market price?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
Gross investment = 200 + 20 = 220; net exports = 80 − 100 = −20.
GDP at MP = 600 + 150 + 220 − 20 = ₹950 crore.
Worth noting
₹1,150 crore adds imports instead of subtracting them; spending on imports is income of foreign producers.
- Concept
- GDP by expenditure
- Typical timeTypical
- 70 s
- Your timeYours
- —
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