Question

[6]
welfare.
16. Calculate National Income by income and expenditure method:
Particuars
in Crores
Compensation of employees
1,200
Net factor income from abroad
(-) 20
Net Indirect taxes
120
800
iv. Profits
Private final consumption expenditure
2,000
vi. Net domestic capital formation
770
vii. Consumption of fixed capital
130
vii. Rent
400
Interest
620
ix
Mixed income of self-employed
700
Net export
(-) 30
Government final consumption expenditure
1,100
Caminin thn nmoutinne tohe taken while calculating national income by Value Added Method. 16)​

Answer 1

Income method:

NDP FC = compensation of employees + mixed income + profit + rent+ interest

= 1200+700+800+400+620

= 3720

NNP FC = NDP FC + net factor income from abroad

= 3720+ (-20)

= 3720 - 20 = 3700

Expenditure method:

GDP MP = PFCE + GFCE + GDCF + NET EXPORTS

= 2000+1100+(770+130)+(-30) { GDCF = NDCF - DEPRICIATION}

= 3970

NNP FC = GDP MP- depreciation +net factor income from abroad - net indirect tax

= 3970-130+(-20)-120

= 3700

Answer:

Explanation: