Question

calculate operating surplus and compensation of employees where indirect tax is equals to 250 depreciation is equals to 200 royalties is equals to 20 profit is equals to 200 subsidies is equals to 50 Gross Domestic Product at market price is equals to 1800 interest is equals to 50 cent is equals to hundred net factor income from abroad is equals to minus 40​

Answer 1

Answer:

W.K.T

Operating Surplus = Rent+ Royalty+Interest+ Profit

=100+20+50+200

=370 crores --------(1)

Also,

NDP at FC= GDP at MP - Depreciation - Net indirect taxes

=1800-200-(250-50)

=1800-400

NDP at FC = 1400 crores-------------(2)

W.K.T

NDP at FC = Compensation of employees + Rent + Profit + Interest + Mixed income

1400 = Compensation of employees + 370 ------------ from (1) & (2)

1400-370= Compensation of employees

Therefore,

Compensation of employees=1030 crores

Explanation:

Net indirect taxes =( indirect tax- subsidies)

= 250-50

=200 crores

Answer 2

The Operating Surplus is 370 and the Compensation of Employees is 1030.

Explanation:

• We already know that.,

• Operating Surplus = Interest + Profit + Rent + Royalties

                                       $=50+200+100+20$

                                        $= 370$

• We also know that,

• Net Domestic Product at Factor Cost = Gross Domestic Product at Market Price – (Depreciation - Net indirect taxes)

• Net Domestic Product at Factor Cost  $=1800-200(250-50)$

                                                                       $=1800-400$

                                                                       $=1400$

• It is also known that,

• Net Domestic Product at Factor Cost = Compensation of employees + Interest + Profit + Rent + Royalties  

• In other words,

• Net Domestic Product at Factor Cost = Operating Surplus + Compensation of employees  

        $1400= 370 +$ Compensation of employees

       Compensation of employees $=1400-370$

                                                         $=1030$

• Hence, the operating surplus is 370 and the compensation of employees is 1030.