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National Income Accounting

Question
CBSEENEC12013208

There are only two producing sectors A and B in an economy. Calculate: (a) Gross value added at MP by each sector, (b) National income. 
                                                                                    (र in crores)
(i) Net factor income from abroad                                       20
(ii) Sales by A                                                                   1000
(iii) Sales by B                                                                  2000
(iv) Change in stock of B                                                  -200
(v) Closing stock of A                                                         50
(vi) Opening stock of A                                                     100
(vii) Consumption of fixed capital by A and B                   180
(viii) Indirect taxes paid  by A and B                                120
(ix) Purchase of raw material by A                                    500
(x) Purchase of raw material by B                                     600
(xi) Exports by B                                                               70

Solution

(a) Gross value added by sector A = 1000 + 50 - 100 - 500 = 450
     Gross value added by sector B = 2000 - 200 - 600 = 1200
    (Sales include exports also)
    Total = 450 + 1200 = 1650 crores
(b) National income (NNPFC) = 1650 - Indirect tax - Dep. + NFIA
                                              = 1650 - 120 - 180 + 20 = 1370 crores