ZAFAR ACADEMY
Institute Of Commerce
Practice Question
Topic : National Income
Question 1.
Given the following data, find the missing value of ‘Government final Consumption Expenditure’ and ‘Mixed Income of Self Employed’.
Particulars ₹ (in Crore)
(i) National Income 71,000
(ii) Gross Domestic Capital Formation 10,000
(iii) Government Final Consumption Expenditure ?
(iv) Mixed Income of Self-employed ?
(v) Net Factor Income from Abroad 1,000
(vi) Net Indirect Taxes 2,000
(vii) Profits 1,200
(viii) Wages and Salaries 15,000
(ix) Net Exports 5,000
(x) Private Final Consumption Expenditure 40,000
(xi) Consumption of Fixed Capital 3,000
(xii) Operating Surplus 30,000
Ans: 20000 , 25000
Question 2.
Given the following data, find the missing values of ‘Gross Domestic Capital Formation’ and ‘Wages and Salaries’.
Particulars ₹ (in Crore)
(i) Mixed Income of Self-employed 3,500
(ii) Net Indirect Taxes 300
(iii) Wages and Salaries ?
(iv) Government Final Consumption Expenditure 14,000
(v) Net Exports 3,000
(vi) Consumption of Fixed Capital 300
(vii) Net Factor Income from Abroad 700
(viii) Operating Surplus 12,000
(ix) National Income 30,000
(x) Profits 500
(xi) Gross Domestic Capital Formation ?
(xii) Private Final Consumption Expenditure 11,000
Ans: 1900, 13800
Question 3.
Calculate National Income by (i) income method and (ii) expenditure method from the following data.
Particulars ₹ (in Crore)
(i) Government Final Consumption Expenditure 2,000
(ii) Net Domestic Capital Formation 600
(iii) Consumption of Fixed Capital 70
(iv) Net Exports 60
(v) Net Indirect Taxes 200
(vi) Private Final Consumption Expenditure 4,000
(vii) Net Factor Income to Abroad 60
(viii) Compensation of Employees 3,660
(ix) Profits 1,500
(x) Rent 500
(xi) Interest 800
(xii) Dividend 300
Ans: 6400 Cr.
Question 4.
Calculate Gross National Product at Factor Cost by (i) Income method, and (ii) expenditure method, from
the following data.
Particulars ₹ (in Crore)
(i) Private Final Consumption Expenditure 800
(ii) Government Final Consumption Expenditure 300
(iii) Compensation of Employees 600
(iv) Net Imports 50
(v) Gross Domestic Capital Formation 150
(vi) Consumption of Fixed Capital 20
(vii) Net Indirect Taxes 100
(viii) Net Factor Income from Abroad (-) 70
(ix) Dividend 150
(x) Rent 120
(xi) Interest 80
(xii) Undistributed Profits 80
(xiii) Social Security Contributions by Employers 60
(xiv) Corporate Tax 50
Ans:1030 Cr.
Question 5.
Calculate (i) Gross Domestic Product at Market Price and (ii) Factor Income from Abroad, from the
following data.
Particulars ₹ (in Crore)
(i) Profits 500
(ii) Exports 40
(iii) Compensation of Employees 1,500
(iv) Gross National Product at Factor Cost 2,800
(v) Net Current Transfers from Rest of The World 90
(vi) Rent 300
(vii) Interest 400
(viii) Factor Income to Abroad 120
(ix) Net Indirect Taxes 250
(x) Net Domestic Capital Formation 650
(xi) Gross Fixed Capital Formation 700
(xii) Change in Stock 50
Ans: GDPMP 3050 Cr. , FIFA 120 Cr.
Question 6.
From the following data, calculate (i) Gross Domestic Product at Factor Cost and (ii) Factor Income to
Abroad.
Particulars ₹ (in Crore)
(i) Gross Domestic Capital Formation 600
(ii) Interest 200
(iii) Gross National Product at Market Price 2,800
(iv) Rent 300
(v) Compensation of Employees 1,600
(vi) Profits 400
(vii) Dividends 150
(viii) Factor Income from Abroad 50
(ix) Change in Stock 100
(x) Net Indirect Taxes 240
(xi) Net Fixed Capital Formation 400
(xii) Net Exports (-) 30
Ans: GDPfc 2600 cr. , FITA 90 cr.
Question 7.
Calculate sales from the following data.
Contents ₹ (in lakhs)
(i) Subsidies 200
(ii) Opening Stock 100
(iii) Closing Stock 600
(iv) Intermediate Consumption 3000
(v) Consumption of Fixed Capital 700
(vi) Profit 750
(vii) Net Value Added at Factor Cost 2000
Ans: 5000 lacs
Question 8.
Calculate sales from the following data.
Contents ₹ (in lakhs)
(i) Intermediate Cost 700
(ii) Consumption of Fixed Capital 80
(iii) Change in Stock (-)50
(iv) Subsidy 60
(v) Net Value Added at Factor Cost 1300
(vi) Exports 50
Ans: 2070 lacs
Question 9.
Find out Net Value Added at Factor Cost.
Contents ₹ (in crore)
(i) Price Per Unit of Output 25
(ii) Output Sold (units) 1000
(iii) Excise Duty 5000
(iv) Depreciation 1000
(v) Change in Stock (-)500
(vi) Intermediate Cost 7000
Ans: 11500 cr.
Question 10
Find Gross Value Added at Factor Cost.
Contents ₹ (in crore)
(i) Units of Output Sold 2000
(ii) Price Per Unit of Output 20
(iii) Depreciation 2000
(iv) Change in Stock (-)500
(v) Intermediate Cost 15000
(vi) Subsidy 3000
Ans: 27500 cr.
Question 11.
Calculate Net Value Added at Factor Cost.
Contents ₹ (in crore)
(i) Consumption of Fixed Capital 600
(ii) Import Duty 400
(iii) Output Sold (units) 2000
(iv) Price Per Unit of Output 10
(v) Net Change in Stocks (-)50
(vi) Intermediate Cost 10000
(vii) Subsidy 500
Ans: 9450 cr.
Question 12.
How should the following be treated while estimating National Income? Give reasons.
(i) Expenditure on education of children by a family.
(ii) Payment of electricity bill by a school.
Question 13.
Giving reason, explain the treatment assigned to the following while estimating National Income.
(i) Family members working free on the farm owned by the family.
(ii) Payment of interest on borrowings by general government.
Question 14.
Giving reason, explain the treatment assigned to the following while estimating National Income.
(i) Social security contributions by employees.
(ii) Pension paid after retirement.
Question 15.
Giving reasons, explain the treatment assigned to the following while estimating National Income
(i) Expenditure on maintenance of a building.
(ii) Expenditure on adding a floor to the building.
Question 16.
Giving reason, explain how are the following treated in estimating National Income method.
(i) Interest on a car loan paid by an individual.
(ii) Interest on a car loan paid by a government owned company.
Question 17.
How are the following treated while calculating national income? Give reasons for your answer.
(i) Receipts from sale of land.
(ii) Profits earned by the branch of an Indian bank in France.
Question 18.
How should the following be treated while calculating national income? Give reasons for your answer.
(i) Interest received by households from banks.
(ii) Dividend received by shareholders.
Question 19.
Will the following be included in the domestic product of India? Give reasons for your answer.
(i) Profits earned by foreign companies in India.
(ii) Salaries of Indians working in the Russian Embassy in India.
(iii) Profits earned by a branch of State Bank of India in Japan.
Question 20.
How will you treat the following while estimating domestic product of a country? Give reasons for your answer.
(i) Profits earned by branches of country’s bank in other countries.
(ii) Gifts given by an employer to his employees on Independence Day.
(iii) Purchase of goods by foreign tourists.
Question 21.
Giving reason, explain how the following should be treated in the estimation of National Income.
(i) Payment of interest by a firm to a bank.
(ii) Payment of interest by a bank to an individual.
(iii) Payment of interest by an individual to a bank.
