1.

Calculate National Income by (i) Income Method and (ii) Expenditure Method from the following data :(Items)(Rs. in crore)(i) Govt. Final Consumption Expenditure2,000(ii) Net Domestic Capital Formation600(iii) Consumption of Fixed Capital70(iv) Net Exports60(v) Net Indirect Taxes200(vi) Private Final Consumption Expenditure4,000(vii) Net Factor Income to abroad60(viii) Compensation of Employees3,660(ix) Profits1,500(x) Rent500(xi) Interest800(xii) Dividend300

Answer»

National Income : Income Method

NNPFC = Compensation of Employees + profit +

Rent + Interest - Net Factor lncome to Abroad

NI = 3,660 + 1,500 + 800 - 60 + 500

= 6,460 - 60 

NNPFC = Rs. 6,400 crore.

Expenditure method 

NNPFC = Government Final Consumption Expenditure + Net Domestic Capital Formation + Net Exports + Private Final Consumption  Expenditure - Net Indirect Taxis - Net Factor Income to Alroad 

= 2,000 + 600 + 50 + 4,000 - 200 + (-60)

= 2,000 + 600 + 60 + 4,000 - 200 - 60

= [6,660] - [250]

NNPFC or NI

= Rs.  6,400 crore.



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