From the following data calculate National Income by income and expenditure methods:Items ( ` in crore) GFCE = 100; Subsidies = 10; Rent = 200;Wages and salaries = 600; Indirect tax = 60; PFCE = 800; GDCF = 120; Social security contributions by employers = 55;Royalty = 25; NFIA = - 30 ; Interest = 20;Consumption of fixed capital = 10;Profit = 130;Net exports = 70;Change in stock = 50 (1,000 crore. 1,000 crore) *
Answers
Explanation:
am prep. Learn more×
answr
search
What would you like to ask?
ECONOMICS
avatar
Asked on December 30, 2019 by
Jerry Suraj
From the following data, calculate National Income by Income method and Expenditure method:
Item Rs. in crores
(i) Compensation of employees 700
(ii) Government final consumption expenditure 750
(iii) Net factor income from abroad (-) 10
(iv) Net exports (-) 15
(v) Profits 600
(vi) Net indirect taxes 60
(vii) Mixed income of self-employed 350
(viii) Rent 200
(ix) Interest 310
(x) Private final consumption expenditure 1100
(xi) Net domestic capital formation 385
(xii) Consumption of fixed capital 65
Share
Study later
ANSWER
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.