1.

Calculate National Income by (i) Income Method, and (ii) Expenditure Method from the following data :(Items)(Rs. in crore)(i) Profit200(ii) Private Final Consumption Expenditure440(iii) Govt. Final Consumption Expenditure250(iv) Compensation of Employees350(v) Gross Domestic Capital Formation90(vi) Consumption of Fixed Capital20(vii) Net Exports(-)20(viii) Interest60(ix) Rent70(x) Net Factor Income to Abroad50(xi) Net Indirect Taxes60

Answer»

Income Method

NNPFC= Profit + Compensation of Employees +

Interest + Rent - Net Factor Income to Abroad

= 200 + 350 + 50 + 70 - 50

=  Rs. 630 crore.

Expenditure Method

NNPFC = Private Final Consumption Expenditure + Govt. Final Consumption Expenditure + Gross Domestic Capital Formation + Net Exports - Consumption of Fixed Capital - Net Factor Income to Abroad - Net Indirect Taxes 

= 440 + 250 + 90 + (-20) - 20 - (50) - 60 

= 780 - 20 - 20 + 50 - 60

= 780 - 100 + 50

= 780 - 150

NNPFC=Rs.630 crore.



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