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Measuring National Income · Question 32 of 69

Question 32

HardOriginal question

GDP at market price is ₹2,000 crore, private final consumption is ₹1,200 crore, government final consumption is ₹300 crore and net exports are ₹−100 crore. Gross domestic capital formation is

Options for question 32

Show the answer and explanation
CorrectNot quiteAnswer C

Correct answer: C

Explanation

  1. I = GDP − C − G − (X − M) = 2,000 − 1,200 − 300 − (−100).

  2. = 500 + 100 = ₹600 crore.

Worth noting

₹400 crore treats the −100 as if it were added; subtracting a negative adds 100.

Concept
Finding investment
Typical time
100 s
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The rule this testsExpenditure method
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