Calculate GNP at FC.

Answer

GNP at FC = ₹ 29 , 830

Explanation

Note : In the given example , only subsidies are given . There can be two ways to solve this :
(i) Add subsidies (as factor cost is to be calculated from the market price): or
(ii) Write formula as : (Indirect taxes - Subsidies ) and put value of indirect taxes as zero .
GNP at FC
= NDP at MP + Depreciation + (Factor income from abroad - Factor income to the rest of the world ) + Subsidies
= 25 , 000 + 5, 000 + (400 - 600) + 30
= ₹ 29, 830 crores
The solution of Example 2 can also be presented as :
= NDP at MP + Depreciation + (Factor income from abroad - Factor income to the rest of teh world ) - (Indirect tax - Subsidies )
= `25 , 000 - 5, 000 + (400 - 600) - (0 - 30)`
= ₹ 29, 830 crores