-->

Non-Competitive Markets

Question
CBSEENEC12012636

From the following data, calculate national income (NNP at FC) by (i) income method, and (ii) expenditure method.   

     

(र in crores)

 
   

Set I

Set II

Set III

(i)

Compensation of employees

1,200

600

500

(ii)

Net factor income from abroad

-20

-10

-10

(iii)

Net indirect tax

120

60

165

(iv)

Profit

800

400

220

(v)

Private final consumption expenditure

2,000

1,000

900

(vi)

Net domestic capital formation

770

385

200

(vii)

Consumption of fixed capital

130

65

-

(viii)

Rent

400

200

90

(ix)

Interest

620

310

100

(x)

Mixed income of self-employed

700

350

400

(xi)

Net exports

-30

-15

-25

(xii)

Government final consumption expenditure

1,100

550

400

(xiii)

Net current transfers from ROW

-

-

50

 

Solution

(a) NI (by income method) = DI + NFIA
Set I = 1,200 - 20 + 800 + 400 + 620 + 700
= 3,700 crores
Set II = 600 - 10 + 400 + 200 + 310 + 350
= 1,850 crores
Set III = 500 - 10 + 220 + 90 + 100 + 400
= 1,300 crores
(b) NNPFC (by expenditure method) = GDPMP - NIT - Dep. + NFIA
Set I = 2,000 + 1,100 + 770 - 30 - 120 - 20
= 3,700 crores
Set II = 1,000 + 550 + 385 - 15 - 60 - 10
= 1,850 crores
Set III = 900 + 400 + 200 - 25 - 165 - 10
= 1,300 crores