Using the income method, compute the Gross Domestic Product (GDP) at market price for Country B for the year 2023 given the following data in crore rupees: Compensation of employees = 1800; Operating surplus (profits of corporations) = 1200; Mixed income (profits of unincorporated enterprises) = 400; Rental income = 250; Indirect taxes = 500; Subsidies = 150; Depreciation (consumption of fixed capital) = 300; Net factor income from abroad = -200. Provide the final GDP figure.

Step-by-step solution

1. Step 1: Sum the primary income components: 1800 (Compensation) + 1200 (Operating surplus) + 400 (Mixed income) + 250 (Rental) = 3650 crore.
2. Step 2: Add indirect taxes: 3650 + 500 = 4150 crore.
3. Step 3: Subtract subsidies: 4150 – 150 = 4000 crore.
4. Step 4: Subtract depreciation: 4000 – 300 = 3700 crore.
5. Step 5: Add net factor income from abroad (negative in this case): 3700 + (-200) = 3500 crore.
6. Step 6: Conclude that GDP at market price = 3500 crore.

Concept tested: GDP via income method

Published 7 October 2026 · How this solution was prepared and checked