Sponsor Area

National Income Accounting

Question
CBSEENEC12013309

Calculate national income by (a) expenditure method, and (b) by production method from the following data:    

   

(र in crore)

(i)

Gross value added at MP by primary sector

300

(ii)

Private final consumption expenditure

750

(iii)

Consumption of fixed capital

150

(iv)

Net indirect taxes

120

(v)

Gross value added at MP by secondary sector

200

(vi)

Net domestic fixed capital formation

220

(vii)

Change in stocks

(-) 20

(viii)

Gross value added at MP by tertiary sector

700

(ix)

Net imports

50

(x)

Government final consumption expenditure

150

(xi)

Net factor income from abroad

20

 

Solution

(a) NNP at FC (Income method) = 300 + 200 + 700 - 150 -120 + 20 = 950 crore
(b) NNP at FC (Expenditure method) = 750 + 220 + 150 + 20 - 120 - 20 - 50 = 950 crore