Calculate National Income and Net Domestic Product at market price by

1.	Calculate National Income and Net Domestic Product at market price by Income method from the following data:(i) Value of output800 Crores(ii) Value of intermediate consumption400 Crores(iii) Subsidies10 Crores(iv) Indirect taxes60 Crores(v) Factor income received from abroad10 Crores(vi) Factor income paid abroad20 Crores(vii) Mixed-income of self-employed120 Crores(viii) Rent and royalty40 Crores(ix) Interest and profit20 Crores(x) Wages and salaries110 Crores(xi) Consumption of fixed capital50 Crores(xii) Employer’s contribution to social security10 Crores
Answer» National Income: NNP_fc = Compensation to employees + Operating surplus + Mixed-income + NFIA. NNP_fc = (x + xii) + (viii + ix) + vii + (v – vi) = (10 + 110) + (40 + 20) + 120 + (-10) = Rs 290 crore. NDP_mp = NNP_fc– NFLA + Net Indirect Taxes = 290 – (10 – 20) + (60 – 10) = 290 + 10 + 50 = Rs 350 crore.

Calculate National Income and Net Domestic Product at market price by Income method from the following data:(i) Value of output800 Crores(ii) Value of intermediate consumption400 Crores(iii) Subsidies10 Crores(iv) Indirect taxes60 Crores(v) Factor income received from abroad10 Crores(vi) Factor income paid abroad20 Crores(vii) Mixed-income of self-employed120 Crores(viii) Rent and royalty40 Crores(ix) Interest and profit20 Crores(x) Wages and salaries110 Crores(xi) Consumption of fixed capital50 Crores(xii) Employer’s contribution to social security10 Crores

Answer»

National Income:

NNP_fc = Compensation to employees + Operating surplus + Mixed-income + NFIA.

NNP_fc = (x + xii) + (viii + ix) + vii + (v – vi)

= (10 + 110) + (40 + 20) + 120 + (-10)

= Rs 290 crore.

NDP_mp = NNP_fc– NFLA + Net Indirect Taxes

= 290 – (10 – 20) + (60 – 10)

= 290 + 10 + 50

= Rs 350 crore.