Question

Income or Expenditure Components Value in current price
1 Import 2,550000
2 Corporate income tax 40000
3 Private final consumption 2,000,005
4 Interest 2000000
5 Net factor income 120000
6 Depreciation 30000
7 Personal tax 40000
8 Social security contribution 25000
9 Government purchase of goods for expansion of educational service 1,100,000
10 Government expenditure on input for road construction 100,000
11 Export 20000
12 Wage 3200
13 Gross fixed capital formation 800000
14 Rent from building 11200
15 Transfer payment 11111
16 Rent from machinery 10000
17 Salary 5000000
18 Excise taxes 5000
19 License fee 6000
20 Undistributed corporate income 1000
21 Bonus 20000
22 Dividend 24000
23 Government expenditures on health 50000
24 Rent from land 75000
25 Proprietor income 50000

Compute the following?
A) Find GDP by using Income and Expenditure approach
B) Find GNP by using Income and Expenditure approach
C) Find NNP by using Income and Expenditure approach
D) Find NI by using Income and Expenditure approach
E) Find PI by using Income and Expenditure approach
F) Find DI by using Income and Expenditure approach

Answer 1

Answer:

No answer of these questions

Answer 2

Answer:

Formula

A) GDP

E=C+I+G+NX

I=Rent+Compensation+Interest+Profit+Overall income

B) GNP

E= GDP+Net Factor Income Abroad

I=National income+Indirect taxes+Depreciation

C) NNP

E=GDP+IFA-Depreciation

I=GNP-Depreciation

D) NI

E=GDP+NX

I=GDP-Depreciation

E) PI

E=Personal Value of cash flow/ Intial investment

I=NI+Income earned but not received+Income received but not earned

F) DI

E=PI-PT

I=Pi-(payable taxes + other deductions)

Explanation:

A) GDP

E=3,810,000

I=2,151,000

B) GNP

E=3,930,000

I=165,000

C) NNP

E=3,805,000

I=135,000

D) NI

E=3,970,000

I=2,121,000

E) DI

E=2,000,005

I=190,000

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