Question

Calculate National Income by Expenditure method.
Particulars
in crores
(i) Final Consumption Expenditure
- Private Sector
350
Government Sector
100
(ii) Mixed income of self employed
35
(iii) Gross domestic fixed capital formation,
70
(iv). Opening stock
15
(v) Compensation of employees
250
(vi) Closing stock
25
(vii) Imports
20
(viii) Rent
75
(ix) Consumption of fixed capital
10
25
(x) Net indirect taxes
25
(xi) Interest
25
(xii) Net factor income from abroad
-5
(xiii) Exports
10
(xiv) Profit
100
​

Answer 1

Answer:

Using the expenditure approach, national income can be represented as follows: National Income = C (household consumption) + G (government expenditure) + I (investment expense) + NX (net exports).