Lesson eLearning

Suppose in a given year, the following data are reported for India: Consumption expenditure = Rs. 90 lakh crore, Investment expenditure = Rs. 30 lakh crore, Government expenditure = Rs. 20 lakh crore, Net exports = Rs. 5 lakh crore. What is the Gross Domestic Product (GDP) at market price?

easy MCQ 1 mark Class 12 · Economics · National Income and Related Aggregates
  1. Rs. 140 lakh crore
  2. Rs. 145 lakh crore
  3. Rs. 155 lakh crore
  4. Rs. 165 lakh crore
Answer
Rs. 145 lakh crore

The correct answer is Rs. 145 lakh crore — Thus GDP at market price = Rs. 145 lakh crore.

Step-by-step solution

  1. Add the four components of expenditure as GDP at market price = C + I + G + (X‑M).
  2. C = Rs. 90 lakh crore, I = Rs. 30 lakh crore, G = Rs. 20 lakh crore, Net exports (X‑M) = Rs. 5 lakh crore.
  3. Compute: 90 + 30 + 20 + 5 = 145 lakh crore.
  4. Thus GDP at market price = Rs. 145 lakh crore.
Common mistake: Omitting net exports or adding exports and imports separately

Concept tested: GDP by expenditure method

Published · How this solution was prepared and checked

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