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Worked Examples · Example 1

Q.From the following data, calculate Gross National Product at market price (GNP-MP): GDP at market price = ₹5,000 crore; Net factor income from abroad = ₹200 crore.

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✓ Free question

Here GDPMP=₹5,000GDP_{MP} = ₹5{,}000 crore and NFIA=₹200NFIA = ₹200 crore.

Step 1 — Recall the relationship. The only difference between the domestic product and the national product is net factor income from abroad:

GNPMP=GDPMP+NFIAGNP_{MP} = GDP_{MP} + NFIA

Step 2 — Substitute.

GNPMP=5,000+200=₹5,200 croreGNP_{MP} = 5{,}000 + 200 = ₹5{,}200 \text{ crore}

Verification (independent re-solve): starting from GNP and reversing the step, GDPMP=GNPMP−NFIA=5,200−200=5,000GDP_{MP} = GNP_{MP} - NFIA = 5{,}200 - 200 = 5{,}000 crore, which matches the given GDP — so the addition was in the right direction.

✓Final answer

Gross National Product at market price = ₹5,200 crore.

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