9654292678

Unsolved Practicals

​
Practicals on Value Added Method

1. In an economy, following transactions took place. Calculate value of output and value added by Firm B:​
(i) Firm A sold to firm B goods of ₹ 80 crore; to firm C ₹ 50 crore; to household ₹ 30 crore and goods of
value ₹10 crore remains unsold​
(ii) Firm 𝐵 sold to firm C goods of ₹70 crore; to firm D ₹40 crore; goods of value ₹30 crore were exported
and goods of value ₹ 5 crore was sold to government.​

Ans. Value of Output of firm B = ₹145 crores; Value added by firm B = ₹65 crores

2. Calculate the value of ‘Sales’ from the following data:

Particulars ₹ in crores
(i) Net value Added at factor Cost 800
(ii) Subsidies 40
(iii) Change in Stock (-) 70
(iv) Sales ?
(v) Intermediate consumption 450
(vi) Consumption of Fixed Capital

Ans. Sales = ₹ 1,320 Crores

( )
3.b Calculate Net Value Added at Factor Cost 𝑁𝑉𝐴𝐹𝐶 from the following date:

Particulars ₹ in crores
(i) Value of Output 800
(ii) Intermediate Consumption 200
(iii) indirect Taxes 30
(iv) Subsidies 50
(vi) Purchase of Machinery 50

Ans. Net value Added at Factor Cost = ₹ 600 Crores

 9654292678

4. Find Net value added at market Price;

Particulars ₹ in crores
(i) Fixed Capital good with a life span of 5 years 15
(ii) Raw materials 6
(iii) Sales 25
(iv) Net change in stock (-) 2
(v) Taxes on production 1

Ans. ₹ 14 lakhs

5. Suppose firm A sold raw material to firm B for ₹1, 000 and to firm 𝐶 for ₹600. Firm 𝐵 sold its product
partly to private consumers for ₹800 and the remaining product was exported for ₹600. Firm C part of its
product to the government for ₹500 for public consumption and the remaining product worth ₹500 was
unsold stock left with it. (Assume that firm 𝐴 buys no raw material). (i) Find the value added by firm 𝐴, firm
𝐵 and firm C. (ii) Total Consumption Expenditure.​

Ans. (i) Value added: Firm 𝐴 = ₹1, 600; Firm 𝐵 = ₹400; Firm 𝐶 = ₹400. (ii) Total Consumption
Expenditure = ₹1, 300

6. In an economy, the following transactions take place and the final sale is for private consumption. A, B, C
and 𝐷 are four industries. A sells to 𝐵 for ₹20, 000. 𝐵 whose value added is ₹40, 000, sells half of its output to
𝐶 and another half to D. C sells all its output to D. D's whose value added is ₹30, 000, sells all its output to
final product for ₹1, 30, 000. What is value added by C ?

Ans. Value Added by 𝐶 = ₹40, 000

7. Calculate “Gross National Product at Market Price” from the following date:

Particulars ₹ in crores
(i) Compensation of employees 2,000
(ii) Interest 500
(iii) Rent 700
(iv) Profits 800
(v) Employers’ contribution to social 201
security schemes
(vi) Dividends 300
(vi) Consumption of fixed capital 100
(viii) Net indirect taxes 250
(ix) Net exports 70
(x) Net factor income to abroad 150
(xi) Mixed income of self-employed 1,500

Ans. ₹ 5,700 Crore

8. On the basis of following data, prove that 'Net Value Added at Factor Cost' is equal to 'Income Generated'.
 9654292678

Particulars ₹ in crores

(i) Addition to stock 1,000

(ii) Sales 10,000

(iii) Net indirect taxes 800

(iv) Purchase of raw material 1,650

(v) Expenses on Power 850

(vi) Consumption of fixed capital 500

(vii) Rent 700

(viii) Compensation of Employees 3,500

(ix) Interest 1,000

(x) Dividend 1,500

(xi) Corporate gains tax 300

(xii) Undistributed profit 200

Ans. Net Value Added at Factor Cost = Income Generated = ₹7, 200 crores

9a. From the following data, calculate the value of operating surplus:​

Particulars ₹ in crores

(i) Royalty 5

(ii) Rent 75

(iii) Interest 30

(iv) Net domestic product at factor cost 400

(v) Profit 45

(vi) Dividends 20

Ans. Operating Surplus = ₹155 crores

10. Calculate the operating surplus from the following data:

 9654292678

Particulars ₹ in crores

(i) Compensation of Employees 300

(ii) Indirect Taxes 200

(iii) Consumption of Fixed Capital 100

(iv) Subsidies 50

(
(v) Gross Domestic Product at Factor Cost 𝐺𝐷𝑃𝐹𝐶 ) 650

Ans. Operating Surplus = ₹250 crores

11. From the following data, calculate "national income" by (a) income method and (b) expenditure method:

Particulars ₹ in crores

(i) Interest 150

(ii) Rent 250

(iii) Government final consumption expenditure 600

(iv) Private final consumption expenditure 1,200

(v) Profits 640

(vi) Compensation of employees 1,000

(vii) Net factor income to abroad 30

(viii) Net indirect taxes 60

(ix) Net exports (−)40

(x) Consumption of fixed capital 50

(xi) Net domestic capital formation 340

Ans. (a) ₹2, 010 crores; (b) ₹2, 010 crores

12. Calculate National Income by Income and Expenditure method.

Particulars ₹ in crores
 9654292678

(i) Compensation of employees 600

(ii) Government final consumption expenditure 550

(iii) Net factor income from abroad (−)10

(iv) Net exports (−)15

(v) Profit 400

(vi) Net indirect tax 60

(vii) Mixed income of self employed 350

(viii) Rent 200

(ix) Interest 310

(x) Private final consumption expenditure 1,000

(xi) Net domestic capital formation 385

(xii) Consumption of fixed capital 65

Ans. National Income = ₹1, 850 crores

13. Calculate National Income by Income and Expenditure method.

Particulars ₹ in crores

(i) Government final consumption expenditure 7,351

(ii) Indirect tax 8,834

(iii) Gross fixed capital formation 13,248

(iv) Mixed income of the self employed 28,267

(v) Subsidies 1,120

(vi) Change in stock 3,170

(vii) Rent, interest and profits 9,637

(viii) Consumption of fixed capital 4,046

(ix) Private Final Consumption expenditure 51,177

(x) Imports of goods and services 5,674

(xi) Exports of goods and services 4,812

 9654292678

(xii) Net factor income from abroad (−)255

(xiii) Compensation of employees 24,420

Ans. National Income = ₹62, 069 crores

14. Calculate National Income by Income and Expenditure method.

Particulars ₹ in crores
(i) Rent 1,500
(ii) Net factor income from abroad 50
(iii) Wages and salaries 25,000
(iv) Indirect tax 1,000
(v) Government final consumption expenditure 11,200
(vi) Subsidies 300
(vii) Royalty 200
(viii) Net exports (−)200
(ix) Interest 6,400
(x) Corporate tax 200
(xi) Profit after tax 4,000
(xii) Households final consumption expenditure 26,000
(xiii) Change in stock 100
(xiv) Net domestic fixed capital formation 600
(xv) Final consumption expenditure of private non-profit institutions serving households 300

Ans. National Income = ₹37, 350 crores

15. Calculate National Income by Income and Expenditure method.​

Particulars ₹ in crores

(i) Opening stock 50

(ii) Profit 60

(iii) Closing stock 10

(iv) Interest 500

(v) Consumption of fixed capital 20

(vi) Private final consumption expenditure 460

(vii) Mixed income 100

(viii) Net exports (−)10

(ix) Net factor income from abroad (−)5

 9654292678

(x) Compensation of employees 300

(xi) Net capital formation 500

(xii) Net indirect taxes 20

(xiii) Government final consumption expenditure 100

(xiv) Rent 70

Ans. National Income = ₹1, 025 crores

16. Calculate NNP at FC by Income and Expenditure method.

Particulars ₹ in crores

(i) Mixed income of self employed 100

(ii) Gross fixed capital formation 300

(iii) Private final consumption expenditure 900

(iv) Net exports (−)50

(v) Subsidies 50

(vi) Government final consumption expenditure 150

(vii) Rent 60

(viii) Indirect taxes 250

(ix) Interest 200

(x) Change in stocks 50

(xi) Compensation of employees 400

(xii) Profit 340

(xiii) Consumption of fixed capital 50

(xiv) Net factor income from abroad 50

Ans. NNP at 𝐹𝐶 = ₹1, 150 crores

17. Calculate gross national product at factor cost from the following data by (a) income method and (b)
expenditure method.​
 9654292678

Particulars ₹ in crores

(il) Wages and salaries 800

(iii) Mixed income of self-employed 160

(iii) Operating surplus 600

(iv) Undistributed profits 150

(v) Gross capital formation 330

(vi) Change in stocks 25

(vii) Net capital formation 300

(viii) Employers' contribution to social security schemes 100

(xx) Net factor income from abroad (−)20

(x) Exports 30

(xi) Imports 60

(xii) Private final consumption expenditure 1,000

(xiii) Government final consumption expenditure 450

(xiv) Net indirect taxes 60

(xv) Compensation of employees paid by the Government 75

Note: Consumption of Fixed Capital is calculated as the difference between (v) and (vii) item.​

Ans. Gross National Product at Factor Cost = ₹1, 670 crores

18. Calculate GDP 𝑀𝑝 by income method and National income by expenditure method.​

Particulars ₹ in crores

(i) Mixed income of the self employed 260

(ii) Rent, interest and profit 290

(iii) Interest on national debt 40

(iv) Government final consumption expenditure 220

 9654292678

(v) Imports 170

(vi) Exports 140

(vii) Private final consumption expenditure 1,530

(viii) Change in stock 100

(ix) Compensation of employees 730

(x) Net factor income from the rest of the world -10

(xi) Consumption of fixed capital 120

(xii) Subsidies 30

(xiii) Gross fixed capital formation 400

(xiv) Indirect taxes 850

Ans. 𝐺𝐷𝑃𝑀𝑃 by Income method = ₹2, 220 crores; 𝑁𝑁𝑃𝐹𝐶 by Expenditure method = ₹1, 270 crores

19. Calculate GDP at MP by Income method and National Income by Expenditure method.

Particulars ₹ in crores

(i) Compensation of employees 490

(ii) Private final consumption expenditure 1,120

(iii) Net factor income from the rest of the world (−)10

(iv) Net fixed capital formation 180

(v) Consumption of fixed capital 80

(vi) Indirect taxes 180

(vii) Current transfers from government to households 20

(viii) Change in stock 60

(ix) Mixed income of the self employed 560

(x) Government final consumption expenditure 150

(xi) Subsidies 20
 9654292678

(xii) Exports 100

(xiii) Imports 110

(xiv) Rent, interest and profit 290

Ans. 𝐺𝐷𝑃𝑀𝑃 by Income Method = ₹1,580 crores; and National Income by Expenditure Method = ₹1,330
crores

20. Calculate GDP at Factor cost by Income and Expenditure method.​

Particulars ₹ in crores ​
(i) Personal consumption expenditure 730
(ii) Wages and Salaries 700
Note : Gross
(iii) Employers' contribution to social security schemes 100
Domestic
(iv) Gross business fixed investment 60
Capital
(v) Profit 100
Formation is
(vi) Gross residential construction investment 60
calculated as:
(vii) Government purchases of goods and services 200
Gross business
(viii) Gross public investment 40
fixed
(ix) Rent 50
investment +
(x) Inventory investment 20
Gross
(xi) Exports 40
(xii) Interest 50 residential
(xiii) Imports 20 construction
(xiv) Net factor income from abroad (−)10 investment +
(xv) Mixed income 100 Gross public
(xvi) Depreciation 20 investment +
(xvii) Subsidies 10 Inventory
(xviii) Indirect taxes 20 investment

Ans. GDP at 𝐹𝐶 = ₹1, 120 crores

21. Calculate (a) Gross domestic product at market price, and (b) Factor income from abroad from the
following​

Particulars ₹ in crores

(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

 9654292678

(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. (a) ₹3, 050 crores; (b) ₹ 120 crores

22. Find out Gross National Product at Market Price from the following data:​

Particulars (₹ Arab)

(i) Opening stock 50

(ii) Private final consumption expenditure 1,000

(iii) Net domestic fixed capital formation 150

(iv) Closing stock 40

M) Net factor income to abroad (−)110

(vi) Government final consumption expenditure 300

(vii) Consumption of fixed capital 30

(viii) Net imports 20

Ans. ₹ 1,460 Arab

23. Calculate Gross National Product at Market Price from the following:​

Particulars ₹ in crores

(i) Net factor income to abroad 10

(ii) Net indirect tax 250

(iii) Operating surplus 300

(iv) Corporation tax 150

 9654292678

(v) Undistributed profits 30

(vi) Mixed income 500

(vii) Consumption of fixed capital 100

(viii) Compensation of employees 1,200

Ans. ₹2, 340 crores

24. Find out National Income:

Particulars ₹ in crores Ans. National Income = ₹ 840 crores

(i) Factor income from abroad 15
(ii) Private final consumption expenditure 600 25. Find out Net National Product at
(iii) Consumption of fixed capital 50 Market Price:
(iv) Government final consumption expenditure 200
(v) Change in stock (−)10
(vi) Net domestic fixed capital formation 110
(vii) Net factor income to abroad 10
(viii) Net imports (−)20
(ix) Net indirect tax 70

Particulars ₹ in crores
(i) Interest 400
(ii) Wages and Salaries 1,000
(iii) Net factor income to abroad (−)20
(iv) Social security contributions by employers 100
(v) Net indirect tax 80
(vi) Rent 300
(vii) Consumption of fixed capital 120
(viii) Corporation Tax 50

(vii) Interest 400

(vii) 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. (a) ₹3, 050 crores; (b) ₹120 crores

26. Calculate National income.

 9654292678

Particulars ₹ In Arab
(i) Net domestic capital formation 110
(ii) Private final consumption expenditure 600
(iii) Subsidies 20
(iv) Government final consumption 100
expenditure
(v) Indirect tax 120
(vi) Net imports 20
(vii) Consumption of fixed capital 35
(viii) Net change in stocks (-) 10
(ix) Net factor income to abroad 5

Ans. National income = ₹ 685 Arab

27. Calculate Net Domestic Product at Factor Cost (NDP 𝐹𝐹𝐶 ) from the following:​

Particulars ₹ in Arab

(i) Net factor income to abroad 10

(ii) 𝐺𝑜𝑣𝑒𝑟𝑛𝑚𝑒𝑛𝑡 final consumption expenditure 100

(iii) Net indirect tax 80

(iv) Private final consumption expenditure 300

(v) Consumption of fixed capital 20

(vi) 𝐺 Goss domestic fixed capital formation 50

(vii) Net imports (−)10

(vii) Closing stock 25

(ix) Opening stock 25

Ans. 𝑁𝐷𝑃𝐹𝐶 = ₹360 𝐴𝑟𝑎𝑏

28. Calculate national income:

Particulars ₹ in crores
(i) Net domestic capital formation 150
(ii) 𝐺 Government final consumption expenditure 300
(iii) Net factor income from abroad 1 − 120
(iv) Private final consumption expenditure 600
(v) Depreciation 30
(vi) Net exports 50
(vii) Net indirect taxes 90
(viii) Net current transfers from rest of the world 40
 9654292678

Ans. National Income = ₹990 Crore

29. Calculate national income:​

Particulars ₹ in crores

(i) Net current transfer from rest of the world 30

(ii) Private final consumption expenditure 400

(iii) Net domestic capital formation 100

(iv) Change in stock 50

(v) Depreciation 20

(vi) Government final consumption expenditure 200

(vii) Net exports 40

(viii) Net indirect taxes 80

(ix) Net factor income paid to abroad 10

Ans. National Income = ₹650 Crore

30. Calculate Gross National Product at Market Price.​

Particulars ₹ in crores

(i) Rent 100

(ii) Profit 200

(iii) Social security contribution by employers 47

(iv) Mixed income 600

(v) Gross domestic capital formation 140

(vi) Royalty 20
 9654292678

(vii) Interest 110

(viii) Compensation of employees 500

(ix) Net domestic capital formation 120

(x) Net factor income from abroad (−)10

(xi) Net indirect tax 150

Ans. Gross National Product Market Price = ₹1, 690 Crore

31. Calculate Net Domestic Product at Factor Cost:

Particulars ₹ in crores
(i) Exports 30
(ii) Private final consumption expenditure 800
(iii) Net imports (−)120
(iv) Net domestic capital formation 100
(v) Net factor income to abroad 10
(vi) Depreciation 50
(vii) Change in stocks 17
(viii) Net indirect tax 120
(ix) Government final consumption expenditure 200

Ans. Net Domestic Product at Factor Cost = ₹1, 000 Crore

32. Calculate Net Domestic Product at Market Price:

 9654292678

Particulars ₹ in crores
(i) Private Final Consumption Expenditure 400
(ii) Opening stock 10
(iii) Consumption of Fixed Capital 25
(iv) Imports 15
(v) Government Final Consumption Expenditure 90
(vi) Net factor income to abroad (−)5
(vii) Gross Domestic Fixed Capital Formation 80
(viii) Closing stock 20
(ix) Exports 10
 9654292678

Ans. Net Domestic Product at Market Price = ₹550 Crore

33. Calculate Net National Product at Market Price.​

Particulars ₹ in crores

(i) Net Factor income to abroad (−)10

(ii) Social security contributions by employees 11

(iii) Consumption of fixed capital 40

(iv) Compensation of employees 700

(v) Corporate tax 30

(vi) Undistributed profits 10

(vii) Interest 90

(viii) Rent 100

(ix) Dividends 20

(x) Net Indirect tax 110

Ans. Net National Product at Market Price = ₹1, 070 Crore

34. From the following data, calculate net value added at factor cost.​

particulars ₹ in crores

(i) Sales 300

(ii) Opening stock 40

(iii) Depreciation 30

(iv) Intermediate consumption 120

(v) Exports 50

(vi) Change in stock 20

(vii) Net indirect taxes 15

 9654292678

(vii) Factor income to abroad 10

Ans. Net Value Added at Factor Cost = ₹155 Crore

35. Calculate National Income.​

Particulars ₹ in crores
(i) Private final consumption expenditure 500
(ii) Net domestic fixed capital formation 100
(iii) Net factor income from abroad 30
(iv) Change in stock 20
(v) Net exports 40
(vi) Net indirect taxes 50
(vii) Mixed income 300
(viii) Government final consumption expenditure 200
(ix) Consumption of fixed capital 60

Ans. National Income = ₹840 Crore

36. Calculate Net National Product at Factor Cost:​

Particulars ₹ in crores

(i) Government final consumption expenditure 500

(ii) Mixed income 1,500

(iii) Net indirect taxes 100

(iv) Net exports 60

(v) Change in stock (−)50

(vi) Net factor income to abroad 70

(vii) Net domestic fixed capital formation 250

(viii) Private final consumption expenditure 2,000

(ix) Consumption of fixed capital 30

 9654292678

Ans. Net National Product at Factor Cost = ₹2, 590 Crore

37. Estimate the missing values (?), if the value of Gross Domestic Product at factor cost (GDP 𝐹𝐹𝐶 ) by
Expenditure Method and Income Method is ₹ 920 crore:
Particulars ₹ crores
(i) Consumption of Fixed Capital 170
(ii) Change in Stock 140
(iii) Mixed Income of Self-employed 180
(iv) Operating Surplus ?
(v) Gross Domestic Fixed Capital Formation 140
(vi) Government Final Consumption Expenditure ?
(vii) Net Exports (−)50
(viii) Net Indirect Taxes 60
(ix) Private Final Consumption Expenditure 470
(x) Compensation of Employees 375
(xi) Employers' Contribution to Social Security Schemes 150

Ans. Operating Surplus = ₹195 Crore; Government Final Consumption Expenditure = ₹280 Crore
 9654292678

38. Calculate Net Domestic Product at Factor Cost:​

Particulars ₹ Crores

(i) Dividends 50
(ii) Social security contributions by employers 40
(iii) Corporate profit tax 30
(iv) Consumption of fixed capital 60
(v) Net factor income to abroad 20
(vi) Retained earnings of private corporate sector 20
(vii) Interest 150
(viii) Net current transfers to rest of the world (−)10
(ix) Rent 100
(x) Net indirect tax 70
(xi) Compensation of employees 600

Ans. Net Domestic Product at Factor Cost = ₹950 Crore

39. Given the following data, find the missing values of 'Gross Domestic Capital Formation' and 'Wages and
Salaries'.

Particulars ₹ in crores

(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

 9654292678

Ans. Gross Domestic Capital Formation = ₹1, 900 Crores; Wages and Salaries = ₹13, 800 Crores

40. Calculate value of "Interest" from the following data:​

Particulars ₹ in crores

(i) Indirect tax 1,500

(ii) Subsidies 700

(iii) Profits 1,100

(iv) Consumption of fixed capital 700

(v) Gross domestic product at market price 17,500

(vi) Compensation of employees 9,300

(vii) Interest ?

(viii) Mixed income of self-employed 3,500

(ix) Rent 800

 9654292678

Ans. Interest = ₹1, 300 Crores

41. Calculate the value of "Mixed Income of Self-Employed" from the following data:​

Particulars ₹ in crores
(i) Compensation of Employees 17,300
(ii) Interest 1,200
(iii) Consumption of Fixed Capital 1,100
(iv) Mixed Income of Self-Employed ?
(v) Subsidies 750
(vi) Gross Domestic Product at Market Price 27,500
(vii) Indirect Taxes 2,100
(viii) Profits 1,800
(ix) Rent 2,000

Ans. Mixed Income of Self-Employed = ₹2, 750 Crores