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    • Question

      A fictional economy “Wonderland” reports the

      following data (in ₹ crore): Private Consumption (C) = 800; Government Expenditure (G) = 200; Gross Investment (I) = 300; Exports (X) = 150; Imports (M) = 100; Net Factor Income from Abroad (NFIA) = −50; Net Indirect Taxes (NIT) = 80; Depreciation/CFC = 60. Calculate NNP at Factor Cost:
      A ₹1,350 crore Correct Answer Incorrect Answer
      B ₹1,190 crore Correct Answer Incorrect Answer
      C ₹1,160 crore Correct Answer Incorrect Answer
      D ₹1,290 crore Correct Answer Incorrect Answer

      Solution

      Note: Key identity: NNP_MP − Net Indirect Taxes = NNP_FC (= National Income). NFIA converts domestic to national; subtracting CFC converts gross to net.

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