Revision Test 2
1. Calculate National Income by Income Method:
Items (₹ in crore)
1. Profit 1,000
2. Mixed Income of self employed 15,000
3. Dividends 200
4. Interest 400
5. Compensation of employees 7,000
6. Net factor income to abroad 100
7. consumption of fixed capital 400
8. Net exports – 200
9. Net Indirect taxes 800
10. Net Current transfers to rest of the world 40
11. Rent 500
2. Calculate the Gross National Product at Market
Price:
Items (₹ in crore)
1. Compensation of employees 2500
2. Profit 700
3. Mixed income of self employed 7500
4. Government final consumption expenditure 3000
5. Rent 400
6. Interest 350
7. Net factor income from abroad 50
8. Net current transfers to abroad 100
9. Net indirect taxes 150
10. Depreciation 70
11. Net exports 40
3. Calculate Net Domestic Product at Factor Cost
by Expenditure method
Items (₹ in crore)
1. Private final consumption expenditure 8000
2. Government final consumption expenditure 1000
3. Exports 70
4. Imports 120
5. Consumption of fixed capital 60
6. Gross domestic fixed capital formation 500
7. Change in stock 100
8. Factor income to abroad 40
9. Factor income from abroad 90
10. Indirect taxes 700
11. Subsidies 50
12. Net Current transfers to abroad (-) 30
4. Calculate:--
a) Gross Value Added at Market Price, and
b) National Income from the following data.
Items ₹ in lakh
(i) Value of Output:
800
a) Primary Sector
200
b) Secondary Sector
300
c) Tertiary Sector
(ii) Value of Intermediate inputs purchased by:
400
d) Primary Sector
100
e) Secondary Sector
50
f) Tertiary Sector
(iii) Indirect taxes paid by all sectors 50
(iv) Consumption of fixed capital of all sectors 80
(v) Factor income received by the residents from rest of the world 10
(vi) Factor income paid to non-residents 20
(vii) Subsidies received by all sectors 20
5. What is the difference between nominal GDP and Real
GDP?
Solution 1:-
Domestic Income = Compensations of Employees + Mixed
Income + Rent (royalty) + Interest + Profit
Domestic Income = 7,000 + 15,000 + 500 + 400 + 1,000
= ₹23900
NNP at FC = Domestic Income + NFIA
NNP at FC = 23900 – 100 = ₹23800
Solution 2:-
Domestic Income = Compensations of Employees + Mixed
Income + Rent (royalty) + Interest + Profit
Domestic Income = 2500 + 7500 + 400 + 350 + 700 =
₹11450
NNP at FC = Domestic Income + NFIA
NNP at FC = 11450 + 50 = ₹11500
GNP at MP = NNP at FC + consumption of fixed capital +
Net Indirect taxes
GNP at MP = 11500 + 70 + 150 = ₹11720 crore
Solution 3:-
Gross Domestic Capital Formation = Gross Domestic Fixed
capital formation + Change in stock
Gross Domestic Capital Formation = 500 + 100 = ₹600
GDP at MP = Private Final consumption expenditure +
Government Final Consumption Expenditure + Gross
domestic capital formation + Net Exports (Exports –
Imports)
GDP at MP = 8000 + 1000 + 600 + (70 – 120) = ₹9550
NDP at FC = GDP at MP – consumption of fixed capital – Net
indirect tax (Indirect tax – subsidies)
NDP at FC = 9550 – 60 – (700 – 50) = ₹8840 crore
Solution 4:-
a)
Gross Value added at Market Price = Value of Output of all
sector – Intermediate consumption of all sector
GVA at MP = a) + b) + c) – (d + e + f)
GVA at MP = ₹800 +₹200 +₹300 – (₹400 + ₹100 + ₹50)
= ₹750 lakh
b)
National Income = GVA at MP – Consumption of Fixed
Capital – Net Indirect Tax (Indirect Tax – Subsidy) + NFIA
(Factor income from abroad – Factor income to abroad)
National Income = ₹750 lakh – ₹80 lakh – (₹50 – ₹20) +
(₹10 – ₹20)
National Income = ₹630 lakh
