Question

the value of net domestic product is?. if the consumption expenditure is 10 500, government spending 3 000, depreciation 500, export 1 200, import 1 000, investment 2 200.

Answer 1

To calculate the Net Domestic Product (NDP), we begin with the Gross Domestic Product (GDP), which can be derived from the expenditure approach:

\[
\text{GDP} = C + I + G + (X - M)
\]

Where:
- \(C\) = Consumption Expenditure
- \(I\) = Investment
- \(G\) = Government Spending
- \(X\) = Exports
- \(M\) = Imports

From your data, we have:
- \(C = 10,500\)
- \(I = 2,200\)
- \(G = 3,000\)
- \(X = 1,200\)
- \(M = 1,000\)

Now, substitute the values into the GDP formula:

\[
\text{GDP} = 10,500 + 2,200 + 3,000 + (1,200 - 1,000)
\]

Now perform the calculations step by step:

\[
\text{GDP} = 10,500 + 2,200 + 3,000 + 200
\]
\[
\text{GDP} = 10,500 + 2,200 + 3,200
\]
\[
\text{GDP} = 15,900
\]

Next, we calculate the Net Domestic Product (NDP) by subtracting depreciation from GDP:

\[
\text{NDP} = \text{GDP} - \text{Depreciation}
\]

Given that depreciation is \(500\):

\[
\text{NDP} = 15,900 - 500
\]
\[
\text{NDP} = 15,400
\]

Therefore, the value of Net Domestic Product (NDP) is **15,400**.