In an economy with no indirect taxes or subsidies, the gross value added by all production units in a year is ₹ 10,000 crores. ₹ 1,000 crores of this is in foreign owned firms, which repatriate 10 percent of this value added to their home countries. The only other transactions with the rest of the world are exports of ₹ 2,000 crores and imports of ₹ 2,500 crores. Then the GDP at market prices of the economy would be
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National income accounting has come up 132 times in 6 exams since 2010.
This question is on What counts in GDP, part of National income accounting in Macroeconomics.
The boundary of GDP: which transactions and goods are counted and which are not.
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Question from the JNU SSS 2018 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.