Question 36
MediumOriginal questionAn economy's income data for a year:
| Item | ₹ crore |
|---|---|
| Compensation of employees | 400 |
| Rent | 50 |
| Interest | 60 |
| Profit | 120 |
| Mixed income of the self-employed | 200 |
| Old-age pensions paid by the government | 35 |
What is net domestic product at factor cost?
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
NDP at FC = 400 + 50 + 60 + 120 + 200 = ₹830 crore.
Old-age pensions are transfer payments and are left out.
Worth noting
₹865 crore adds the pensions, which are not earned by producing anything.
- Concept
- Domestic income by the income method
- Typical timeTypical
- 70 s
- Your timeYours
- —
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