-

 Q1. Calculate national income by income method and expenditure method from the given data-

Particulars                                                                                             Rs. inCrore 

      (i)            Factor income from abroad                                                      10

    (ii)            Compensation of employee                                                       150

   (iii)            Net domestic capital formation                                                50

  (iv)            Private final consumption expenditure                                   220

    (v)            Factor income to abroad                                                          15

  (vi)            Change in stock                                                                         15

 (vii)            Consumption of fixed capital                                                  15

(viii)            Interest                                                                                     40

  (ix)            Net export                                                                               (-) 5

    (x)            Net indirect taxes                                                                    20

  (xi)            Rent                                                                                         40

 (xii)           Government final consumption expenditure                      85

(xiii)      Profit                                                                                      100

Ans.  Income Method

NDPFC = COE + OS + MISE 

          = 150 + (40+ 40+100) + 0=330                     [ OS = Rent + Interest + Profit]

NNPFC = NDPFC + NFIA 

          = 330 + (-5) = 325

NNPFC = Rs.325 Crore

Expenditure Method 

GDPMP = PFCE + GFCE + GDCF + NX

             = 220 + 85 + 65 + (-5) = 365

NNPFC = GDPMP  - Depreciation  + NFIA  - NIT

             = 365 - 15 + (-5) - 20 = 325

NNPFC = Rs.325 Crore



Q2. Calculate gross national product at market price from the data given below

      (i)            Net factor income to abroad                                                                       30

    (ii)            Wages and salaries                                                                              600                                      

   (iii)            Gross domestic capital formation                                                             120

  (iv)            Private final consumption expenditure                                                      800

    (v)            Employers contribution toward Social Security Scheme                          55

  (vi)            Royalty                                                                                                     25

 (vii)            Factor income to abroad                                                                          15

(viii)            Change in stock                                                                                       50

  (ix)            Consumption of fixed capital                                                                  10

    (x)            Interest                                                                                                     20

  (xi)            Net export                                                                                                80

 (xii)            Net indirect taxes                                                                                   50

(xiii)            Rent                                                                                                       200

(xiv)            Government final consumption expenditure                                       100

(xv)            Profit                                                                                                     130

Ans. Income Method 

NDPFC = COE + OS + MISE 
            = (600 + 55) + ((25+ 200+20+130) + 0 = 1030
GNPMP  = NDPFC + Depreciation + NFIA + NIT
              = 1030 + 20 + (-30) + 50 = 1070
GNPMP  = Rs.1070 crore

Expenditure Method
GDPMP  = PFCE + GFCE + GDCF + NX
              = 800 + 100 + 120 + 80 = 1100
GNPMP  = GNPMP  =+ NFIA 
             = 1100- 30 = 1070
GNPMP  = Rs.1070 crore

Q3. 

Calculate Net Value added at factor cost (NVAFC)

S.No.`

                                      Items

` Crores

1

Goods and Services Tax

25

2

Consumption of Fixed Capital

5

3

Closing Stock

10

4

Corporate Tax

15

5

Opening Stock

20

6

Sales

540

7

Purchase of raw Materials

140

 Ans. 

GVAMP = Sales + Change in  Stock – intermediate consumption


GVAMP = Sales – Intermediate Consumption + Change in Stock

                             =  540  -   140  +  (10 – 20)

                  = 540  - 140 + (-) 10

                   =  390

    NVAFC = GVAMP – Depreciation - NIT

                   = 390 – 5 -25  = 360

    NVAFC  = 360 CRORES

Q4. Calculate Gross Value Added at Market Price (GVAMP)

S.NO.

Items 

` IN crores

1

Goods and service tax

90

2

Sales 

800

3

Depreciation

50

4

 Net change in stock 

(-)  40

5

Purchase of raw materials 

360

6

 Corporate tax 

10

 Ans. GVAMP = Sales – Intermediate Consumption + Change in Stock

                         = 800 – 360 + (-) 40

                  = 440 + (-) 40 = 400 Crores

 Q5. Calculate national income from the following data

S.NO

Items 

 crores 

I

Wages and Salaries

500

Ii

Royalty

20

Iii

Interest

40

Iv

Change in Stock

10

V

Indirect Tax

100

Vi

Rent

50

vii

Profit after tax

100

Viii

Corporate tax

20

Ix

Subsidies

30

x

Net Factor Income from Abroad

(-) 5

 Ans. NDPFC = COE + OS + MI

    COE =  500

     OS = Royalty + Interest +Rent + Profit

      Profit = Profit after tax + Corporate Tax =100 + 20 = 120

      OS = 20 + 40 + 50 + 120 = 230

      NDPFC = 500 + 230 + 0 = 730

      NNPFC = NDPFC + NFIA = 730 + (-) 5 = 725 Crores

                     NNPFC = Rs.  725 Crores

  Q6. Calculate National Income from the following data

S.NO

Items

Rs. In Crores

I

Mixed Income of self employed

200

Ii

Old age pension

20

Iii

Dividends

100

Iv

Operating Surplus

900

v

Wages and salaries

500

vi

Profits

400

vii

Employer’s contribution to social security schemes

50

Viii

Net factor income from abroad

(-) 10

Ix

Consumption of fixed capital

50

x

Net Indirect Tax

50

Ans. NDPFC = COE + OS + MI

COE = Wages and salaries+ Employer’s contribution to

           social security schemes

       = 500 + 50 = 550

         OS =  900

         MI = 200

         NDPFC = 550 + 900 + 200 = 1650

        NNPFC = NDPFC + NFIA = 1650 + (-) 10 = 1640 Crores

Q7. Calculate national income from the following data


(i) Gross domestic capital formation                                        800
(ii) Net Export                                                                          (-) 60
(iii) Net factor income from abroad                                      (-) 40
(iv) Government final consumption expenditure                  600
(v) Private final consumption expenditure                           1200
(vi) Depreciation                                                                              120
(vii) Net indirect taxes                                                                   180

GDPMP = PFCE + GFCE + GDCF + NX
= 1200+600+800+(-60) = 2540
NNPFC = GDPMP – Dep +NFIA – NIT
= 2540 – 120 + (-40) -180 = 2200

NNPFC = Rs.2200 crores

Q8. Calculate Gross National Product at Market Price by Expenditure Method.

S.NO

Items

` Crores

i

Private Final Consumption Expenditure

200

ii

Government Final Consumption Expenditure

50

iii

Gross Domestic Capital Formation

60

iv

Net Imports

10

v

Consumption of Fixed Capital

20

vi

Net Indirect Tax

30

vii

Net Factor Income From Abroad

(-) 20

viii

Change in Stocks

10

 

Ans. GDPMP = PFCE + GFCE + GDCF + Net Exports

    PFCE  =  200

    GFCE  = 50

    GDCF = 60

    Net Exports = (-) 10

    GDPMP = 200 + 50 + 60 + (-) 10 = 300

    GNPMP = GDPMP + NFIA = 300 + (-) 20 = 280 Crores

Comments

Post a Comment

Popular posts from this blog

UNIT- 1 NATIONAL INCOME AND RELATED AGGREGATES

-
Image
  1. Basic Concepts of Macroeconomics Macroeconomic   Macroeconomics is the branch of economics that deals with the behaviour and performance  of an economy as a whole. Difference between Microeconomics and  Macroeconomics Microeconomics studies the behaviour of individual economic units.  Example - demand of a consumer, price determination of a commodity It's main tools are demand and supply.  It is also called price theory Macroeconomics studies the behaviour of the economy as a whole.  Example - income and employment in the economy, money supply in the economy It's main tools are aggregate demand (AD) and aggregate supply (AS).  It is also called Income and Employment Theory.  Final Goods  Final goods refer to those goods which are either used for consumption purpose  or for investment purpose by the end user. For example - Milk, machine etc * Expenditure made on them is called final expenditure Intermediate Goods  Intermedi...
Read more

Indian Economy on the Eve of Independence NCERT Solution

-
Indian economy on the eve of independence Introduction: The sole purpose of the British colonial rule in India was to reduce the country to being a raw material supplier for Great Britain's own rapidly expanding modern industrial base. Before the British rule: The Indian economy was primarily an agricultural economy. The prominent handicraft industries which gave prime place to India in the world market were cotton and silk textile, metal industries, precious stone works.etc. During the British Rule: The main interest was to protect and promotion of economic interests of Britain's rather than the development of the Indian economy British government changed the whole structure of the Indian economy and transformed it into a supplier of raw materials and consumer of finished product of British industries.. No sincere efforts were made for estimating India's national income and per capita income but some Indian economists made efforts. It included Dada Bhai Naroji, William Dig...
Read more

INDIAN ECONOMY 1950-1990

-
  ECONOMIC SYSTEM  An Economic system is an order of an economy.  Thus. an economic system is a system of production, resource allocation and distribution of goods and services within a society. Capitalism (Free Economy/ Market Economy/ Laissez Faire) Resources are owned, managed and controlled by private individuals. The private individuals. Its main aim to earn maximum profits. Market forces i.e. demand for and supply of goods determined the price. Government’s role is limited. Socialism (Planned Economy)  Resources are owned by the society. The Government undertakes the production of goods and services. The aim, of production is welfare of the people. Economic Planning solves the basic questions. Mixed Economy  It is a combination of capitalism and socialism. Private and Public sectors co exist.  REASONS BEHIND THE ADOPTION OF  MIXED ECONOMY        (i) Economic condition of India was backward at the time of Independence. So, we w...
Read more