Using the income method, compute the Gross Domestic Product (GDP) at market price for Country Z in 2023. The data (in crore rupees) are: Compensation of employees = 2,100; Operating surplus = 1,400; Mixed income = 600; Rental income = 300; Indirect taxes = 550; Subsidies = 200; Depreciation = 400; Net factor income from abroad = 100.

Step-by-step solution

1. $Step,1:$ Write down the income‑approach formula for GDP: $GDP=C+O+M+R+IT-S+D+NFI$ where $C$=compensation, $O$=operating surplus, $M$=mixed income, $R$=rental, $IT$=indirect taxes, $S$=subsidies, $D$=depreciation, $NFI$=net factor income from abroad.
2. $Step,2:$ Insert the given values: $GDP=2100+1400+600+300+550-200+400+100$.
3. $Step,3:$ Perform the arithmetic step‑by‑step: $2100+1400=3500$ $3500+600=4100$ $4100+300=4400$ $4400+550=4950$ $4950-200=4750$ $4750+400=5150$ $5150+100=5250$
4. $Step,4:$ The final GDP at market price is $5,250$ crore.
5. $Step,5:$ Re‑check all figures – notice that the earlier addition mistake led to $5,870$ crore; correcting yields $5,250$ crore.
6. $Step,6:$ Provide the correct answer: $5,250$ crore.

Concept tested: Income approach to GDP

Published 13 October 2026 · How this solution was prepared and checked