Question

calculate national income from. Coe=800
Rent=200
Wages and salaries=750
Net exports=(-)30
NFIA=(-)20
Profit= 300
Interest=100
Depreciation=50

By income method​

Answer 1

National income = 1430

Explanation:

• Calculating National income through Income method.

we have given,

• Operating surplus = rent + profit + interest

• => 200+300+100 = 600

• Consumption of employees = 800

• NFIA=(-)20

• Depreciation = 50

(To calculate the national income we have to add all the components of national income which comes under income method .)

• Net National product at factor cost (NNPFC)
• Net National product at factor cost (NNPFC)= operating surplus + consumptions of employee + mixed income + net factor income from abroad + Depreciation

• => 600+800+50+(-20)
• => 1430

NNPFC = 1430

Answer 2

Explanation:

Since national income is NNP at fc and we have found the NDP at fc through income method so last thing we have to do is convert D to N (Domestic to National) so just add NFIA to NDP at fc.

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