Question

2.Calculate Gross National Product at Factor Cost from the following data by (a) income method, and (b) expenditure method:Items (` in crore)PFCE = 1,000, NDCF = 200, Profits = 400, COE = 800, Rent = 250, GFCE = 500, CFC = 60, Interest = 150, NFIA = (–)10, Net exports = (–)20, Net indirect taxes = 80((a) 1,650 crore(b) 1,650 cr)​

Answer 1

Explanation:

National income (income method) = Compensation of employees + Profits + Rent + Interest + Mixed income of self employed - Net factor income to abroad = 700 + 600 + 200 + 310 + 350 - 10 = 2150 crores

National income (expenditure method) = Govt. final consumption expenditure+Net domestic capital formation+Net exports+Private final consumption expenditure-Net indirect taxes-Net factor income to abroad=750 + 385 - 15 + 1100 - 60 - 10 = 2150 crores.

Answer By