Saved Bookmarks
| 1. |
From the following information, calculate gross national income by (a) Income Method, and (b) Expenditure Method :Income MethodExpenditure Method (₹ in Crores)(i) Factor income from abroad10(ii) Compensation of employees150(iii) Net domestic capital formation50(iv) Private final consumption expenditure220(v) Factor income to abroad15(vi) Change in stock15(vii) Employer’s contribution to social security schemes10(viii) Consumption of fixed capital15(ix) Interest40(x) Exports20(xi) Imports25(xii) Indirect taxes30(xiii) Subsidies10(xiv) Rent40(xv) Government final consumption expenditure85(xvi) Profit100 |
|
Answer» Gross National Income (GNPFC) by Income Method = Rent + Compensation of employees + Interest + Profit + Factor income from abroad – Factor income to abroad + Consumption of fixed capital = 40 + 150 + 40 + 100 + 10 – 15+ 15 = 355 – 15 = ₹340 Crores. Gross National Income (GNPFC) by Expenditure Method = Private final consumption expenditure + Government final consumption expenditure + Net domestic capital formation + Consumption of fixed capital + Exports – Imports + subsidies – Indirect taxes + Factor income from abroad – Factor income to abroad = 220 + 85 + 50+ 15 + 20-25 + 10-30+ 10- 15 = 410 – 70 = ₹340 Crores |
|