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National Income Accounting

Question
CBSEENEC12013297
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From the following data, calculate national income by (a) income method, and (b) expenditure method.   

   

(र in crores)

(i)

Private final consumption expenditure

2,000

(ii)

Net capital formation

400

(iii)

Change in stock

50

(iv)

Compensation of employees

1,900

(v)

Rent

200

(vi)

Interest

150

(vii)

Operating surplus

720

(viii)

Net indirect taxes

400

(ix)

Employees contribution to S.S. schemes

100

(x)

Net exports

20

(xi)

Net factor income from abroad

-20

(xii)

Government final consumption expenditure

600

(xiii)

Consumption of fixed capital

100

Solution

(a) National income (by income method)
= 1,900 + 720 - 20 = 2,600 crores
Note: Operating surplus consists of rent, interest and profit. So rent and interest are not included separately.
(b) National income (by expenditure method)
= 2,000 + 400 + 20 + 600 + (- 20) - 400
= 2,600 crores
Note: Change in stock is a part of net capital formation and therefore not included separately.

Some More Questions From National Income Accounting Chapter

Briefly explain the following basic concepts related to NI:
Gross Investment and Net Investment

Briefly explain the following basic concepts related to NI:
Domestic (Economic) Territory

Briefly explain the following basic concepts related to NI:
Normal Residents

Briefly explain the following basic concepts related to NI:
National Income at Current and Constant Prices (Nominal and Real NI).

Briefly explain the following basic concepts related to NI:
Consumption of Fixed Capital (Depreciation).

Briefly explain the following basic concepts related to NI:
Factor Cost vs. Market Price (or Net Indirect Taxes)

Briefly explain the following basic concepts related to NI:
Net Factor Income from Abroad (NFIA)

Briefly explain the following basic concepts related to NI:
Value of Output vs. Value Added

Briefly explain the following basic concepts related to NI:
Factor Payment (Income) vs. Transfer Payment (Income)

Briefly explain the following basic concepts related to NI:
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