1. Calculate GNP at FC.
Solution-
2. Calculate National Income
Solution:-
3. Calculate (a) Value of output (b) Intermediate consumption and (c) NVA at FC
from the following data.
Solution:-
4. Calculate NDP at FC.
Solution:-
5. Calculate from the following data, National Income.
Solution:-
6. Calculate National Income.
Solution:-
7. Calculate NDP at FC by expenditure method.
Solution:-
8. Calculate National Income by Income and Expenditure Method.
Solution:- NATIONAL INCOME BY INCOME METHOD:
National Income by Expenditure Method:
9. Calculate national income
Items In
cr.
Compensation of employees 800
Mixed income of self 900
employed
Net factor income from abroad -50
Rent 350
Profit 600
Consumption of fixed capital 200
Net indirect taxes 250
Interest 450
Operating Surplus 1400
Solution:-
GDPMP = Compensation of employees + mixed income of self employed + operating surplus
+ depreciation + net indirect taxes
=200+250+800+ 1400 (350+600+450)+900 =3550
GNPMP = GDPMP + NFIA
= 3550 +(-50)
= 3500
NNPMP = GNPMP – Dep.
= 3500- 200
= 3300
NNPFC = NNPMP- NIT
=3300- 250
=Rs. 3050 crores
10. Calculate NNPFC and Private Income
Solution
Georgi Mathew
11. Find personal disposable income
Solution
Georgi Mathew
Problem 1. The figure given below pertain to the year 2000-01. (All figures in Rs. Crore)
GNP at Factor Cost 95,023
Indirect taxes 14,723
NDP at market price 1,00,422
NNP at market price 1,00,575
GNP at market price 1,07,226
(1) Calculate the value of Depreciation.
Solution: Depreciation= GNP at Market Price – NNP at Market Price
= Rs. 1,07,226 – 1,00,575 = Rs. 6,651.
(2) Calculate the value of Net Factor Income from abroad.
Solution: Net Factor Income from Abroad = NNP at Market Price – NDP at Market
Price.
= Rs. (1,00,575 – 1,00,422) = Rs. 153.
(3) Calculate the value of Subsidies.
Solution: Subsidies = GNP at Factor Cost + Indirect Taxes - GNP at Market Prices.
= 95,023 + 14,723 – 1,07,226 = 2,520
(4) Calculate the value of NDP at Factor Cost.
Solution: NDP at Factor Cost. = NDP at Market Price – Indirect Taxes + Subsidies.
= 1,00,422 - 14,723 + 2,520 = 88,219.
Problem 2. For the year 2000-01, the national accounts statistics at current prices were as
follows:
Particulars Rs.
(in crore)
GNP at Factor Cost 1,14,601
Depreciation 8,602
Subsidies 2,822
Net Factor Income from abroad +330
Indirect taxes 16,745
Personal Disposable Income 55,000
National Income 80,000
Personal Income 60,000
(1) Calculate the value of Personal Income Taxes.
Solution: Personal Income Tax = Personal Income - Personal Disposable Income.
= 60,000 – 55,000 =5,000.
(2) Calculate the value of Retained Profits.
Solution: Retained Profits = National Income – Personal Income
= 80,000 – 60,000=20,000
Problem 3:
Rs. (in
Particulars
crore)
GDP at Factor Cost 8,000
Corporate Income Tax 1,500
Personal Income Tax 900
Subsidies 600
Factor Income received
2,000
from abroad
Factor Income paid
2,200
abroad
Undistributed Profits 300
Indirect Taxes 1,000
Depreciation 500
(1) Calculate the value of GNP at Market Price.
(2) Calculate the value of GNP at National Income
(3) Calculate the value of Personal Disposable Income
GNP at Market Price
GNP at Market Price=GDP at Factor Cost+Net Factor Income from Abroad+Indirect Taxes−
Subsidies
Net Factor Income from Abroad = Factor Income Received - Factor Income Paid
Net Factor Income from Abroad=2,000−2,200 = −200
Substitute the values:
GNP at Market Price=8,000+(−200) +1,000−600
GNP at Market Price=8,200
National Income=GNP at Market Price−Indirect Taxes+Subsidies−Depreciation
Substitute the values:
National Income=8,200−1,000+600−500
National Income=7,300
Personal Disposable Income=National Income−Corporate Taxes−Undistributed Profits−Perso
nal Taxes
Substitute the values:
Personal Disposable Income=7,300−1,500−300−900
Personal Disposable Income=4,600
Formulas
National Income = NNP at Factor Cost
NNP at Factor Cost = NNP at market price – Indirect taxes + Subsidies NNP at
Market Price = GNP at Market Price – Depreciation
GNP at Market Price = GNP at Factor Cost +Indirect Taxes – Subsidies
GNP at Factor Cost = GDP at Factor Cost + Net Factor Income from Abroad
Personal Disposable Income = Personal Income - Personal tax
Personal Income = National Income – Retained Earnings – Corporate Taxes
National Income = NNP at Factor Cost
NNP at Factor Cost = NNP at Market Price – Indirect Taxes + Subsidies
NNP at Market Price = GNP at Market Price – Depreciation
GNP at market Price = GNP at Factor Cost + Indirect Taxes – Subsidies
GNP at Factor Cost = GDP at Factor Cost + Net Factor Income from Abroad
