Question

Given the following data find the values of “Operating surplus” and “Net Exports”.
Sl. No Name of the Item Amount
(Rs in Crores)
1 Wages and Salaries 2400
2 National Income 4200
3 Net Exports ----
4 Factor income from abroad 200
5 Gross domestic Capital formation 1100
6 Mixed Income of Self employed 400
7 Private Final consumption Expenditure 2000
8 Net Indirect Taxes 150
9 Operating surplus ---
10 Government Final consumption
Expenditure
1000
11 Depreciation 100
12 Profits 500

Answer 1

Given,

(Rs in Crores)

1 Wage and Salaries 2400

2 National Income 4200

3 Factor income from abroad 200

4 Gross domestic Capital formation 1100

5 Mixed-Income of Self employed 400

6 Private Final consumption Expenditure 2000

7 Net Indirect Taxes 150

8 Government Final consumption Expenditure 1000

9 Depreciation 100

10 Profits 500

To Find,

the values of “Operating surplus” and “Net Exports”

Solution,

First, we will find the operating surplus

NDP = COE + OS + MI

4000 = 2400 + OS + 400

4000 = 2800 + OS

4000 - 2800 = OS

1200 = OS

So, Operating Surplus is Rs 1200cr

Now we will find the Net Exports

GDP = FFCE + GPCE + GDFC + Net Exports

GDP = NDP + Consumption of Fixed Capital + NIT

GDP = 4000 + 100 + 150

GDP = Rs 4250

Applying this in the first formula

4250 = 2000 + 1000 + (1000 + 100) + Net Exports

4250 = 3000 + 1100 + Net Exports

4250 = 4100 + Net Exports

4250 - 4100 = Net Exports

150 = Net Exports

So, the Net Exports is Rs 150cr

Thus, the operating surplus is Rs 1200cr and Net Exports is Rs 150cr

Answer 2

SOLUTION :

To find (net export)

PFCE 2000

+

GFCE 1000

+

GDCF 1100

+

Net export ?

↓

GDPMP 4250

+dep (100)

↑ -NFIA (200)

+NIT (150)

NNPFC 4200

2000 + 1000 + 1100 + Net export = 4250

Net export = 4250 - 4100

Net export = 150

To find (OS)

COE 2400

+

MI 400

+

OS ?

↓

NDPFC 4000

↑ -NFIA (200)

NNPFC 4200

2800 + OS = 4000

OS = 4000 - 2800

OS = 1200