■ Measurement of National Income

Ch'Pttr4
ill you treat the following while est1 mating national Income of lndla? Give reasons for your answe~
11• H~W wlaries received by Indian residents working In Russian Embassy In India. •
(i) Sa fit earned by an Indian bank from Its branches abroad.
(ii) pro ds and services Tax received by the government.
(111 GOO, s #Items included/excluded In National Income''.
•")
Hint: Re,er .
. th problem of double counting in estimating national income, with the help of an example. Also
12, e,cpla~n
explain
tw: alternative ways of avoiding the problem.
n • " •
{CBSE, All India 2010, All India 2019, 2020 (SB/3/J)J
. the concept of real income. Explain why, due to the presence of externalities real national Income
13, ~~:; cannot be treated as a true index of welfare. {CB~E, Delhi Comptt. 20131
,n . . h between 'nominal income' and 'real Income'. Explain why due to the presence of non-monetary
• OistinQUIS
,.,, roduction, real national income on ·its own cannot be treated as a true index of welfare. •
P {CBSE, All India Comptt. 2013}

,s. expIam. any four limitations of using GDP as a.measure/ index of welfare of a country.
{CBSE, Sample Paper 2076)
lain 'non-monetary exchanges' as a limitation of using gross domestic product as an index of welfare of
16, ExP
acountry. {CBSE, Delhi 2017}
• How will you treat the follo~ing while estimating domestic product of a country? Give reasons for your
17
answer: {CBS£, Delhi 2017)
(a) Profits earned by branches of country's bank in other countries.
(b) Gifts given by an employer to his employees on Independence Day.
(c) Purchase of goods by foreign tourists.

18, Differentiate between National Income at Current Prices and National Income at Constant Prices. Which of
the two presents a better view of the economic growth of economy and why? {CBSE, Sample Paper 2019)
19. Explain the meaning of Real Gross Domestic Product and Nominal Gross Domestic Product, using a numerical
example. {CBSE, All India 2019}

Unsolved Pradicals
Practicals on Value Added Method
1. In an economy, following transactions took place. Calculate value of output and value added by Firm B:
(i) Firm Asold to firm B goods off 80 crore; to firm Cf 50 crore; to household f 30 crore and goods of
valuef 10 crore remains unsold
(ii) Firm Bsold to firm C goods off 70 crore; to firm D f 40 crore; goods of value f 30 crore were exported
and goods of value f 5 crore was sold to government. {CBSE, Sample Paper 2019)

Value of Output offirm B= f 145 crores; Value added by firm 8 =f 65 crores

2
' Calculate Value added by firm A and firm B.

{i) Salesby firm A 100

Oi) Pu~rc~h=-:-:-~ -- - - - - - - - - - - - -- - - --+- - - :.:.:.-1
1

.. Purch
(iii) ~ as:es::-:f:-
ro_m~fi..:.:.
1r.:.:.:
m:..::B:._:b~y'...'fi..1rm
'. '. .~ A~ - - - - - - - . , . . -- - - - -- -- + - - - - -40
:..:::,_-I
0V) ases from firm A by firm B 60
~~~B ~
(v) Closl
(vi) Cl ng stock of firm A 20
OSlng stock of firm e 35
 Introd uctor y Macroec° "

(vii) Openi ng stock of firm A 2S

(viii) Opening stock of firm B ~
(ix) Indire ct taxes paid by both the firms 3()
Value added by firm A= f 55 crores, Value added by firm B- f1 30ao,es - -----..
3. Calculate net value added at factor coSt from follow ing data:

(I) Purchase of machinery to be used in the produ ction unit

(ii) Sales 200
(iii) Intermediate costs 90
(iv) Indire ct taxes 12
(v) Change in stock 10
(vi) Goods and Services Tax
6
(vii) Stock of raw material
5
Net value added at factor cost= f 108 Crores
4. Calculate NDPFC
.. .,.1 '• ..:._,\.. tjf /,4ft~
Partic ulars ~
• ..· ~ ,of-
'•• .. ,-~.~-
,J ~
!
...
,.
-~ ..,...-::.:~--;:. . .. .
~_in crores
(i) Subsidies
1
(ii) Sales
100
(iii) Closing stock
10
(iv) Indirect taxes
5
(v) Intermediate consu mption
30
(vi) Openi ng stock
20
(vii) Consu mption of fixed capital
15

5. Calculate 'value of outpu t' from the follow ing data: NDPFc = f 41 crores

(i) Subsidy
10
(ii) Interm ediate consu mption
150
(iii) Net additi on to stocks
(- )13
(iv) Depreciation
30
(v) Goods and Services Tax
20
(vi) Net value added at factor cost
250
Value of outpu t= f 440 lakhS
6. Calculate value of outpu t and gross value added at marke t price

(i) Open ing stoc,k

1,r#J
(ii) Closin g stock
800
(iii) Purchase of raw mater ials
200
(iv) Sales
10.000
 ,,..._, 4 ■ Measurement of National Income
o,,,-- .
_ _~_ ____:2=5~0~
~~ct= -t_ax_ es_ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_J__ __ _;_s~o~
~d:: .:ie. ::s-- -- - - ~ ~ - - -_ _ _ _ _ _ _ __
Value ofoutput= r 9,800 crores; Gross value added at MP= r9,600 crores
• calculate the value of'Sales'from the following data:
1 ? in crores
particulars
:tt
·O) Net Value Added at Factor Cost
40
(ii) subsidies
(-)70
(iii) Change in Stock
?
(iV) Sales
(V) Intermediate Consumption
450
40
(vi) Consumption of Fixed Capital
Sales= ( 1,320 Crores

71, Calculate
Particulars
(i) Gross value of output
,.
:;••-~·~-
•tntermediate Consumption"from the following data:
,;,~"" " .
- . ·,1•~i:~·
,,.;;:;,.,..,~'('!~~.
~
':J, ~i ~~ ,, ♦ .•

~'\~~!>,°!~":;!]~,/•::,.....
' \ •
, • \ .., ,,
•
~ :, .,
{CBSE, Delhi Comptt.2019)

I tin crores
300
100
(ii) Net value added of factor cost (NVA~r)
'. 15
(iii) Subsidies
30
(iv) Depreciation
Intermediate Consumption= ( 185 Crores
Added at Factor Cost (NVAFc) from the following data: {CBSE, 2020 (58/4/1)}
7b. Calculate Net Value
Particulars
-·:,,.'€,~ ~~~-~-~ -7,'i','~:1,': .;_. :,,·~ ;:·
·;-._:,~•.Hf3!'zi~-.,,._-.~.-,..-;_t\.s·'j\•·~- ~ ,,~ /:. : , ,
..
I ~ in crores

800
(i) Value of Output
200
(ii) Intermediate Consumption
30
(iii) lndirectTaxes
20
(iv) Depreciation .
(v) Subsidies 50

(vi) Purchase of Machinery 50

Net Value Added at Factor Cost = ( 600 Crores

8• Calculate Net Value Added at Factor Cost: {CBSE, Delhi 2012 (II)}

600
(I) Consumption of fixed capital (f)
(II) GOOds and Services Tax or GST* (f)
400
(HQ Output sold (units) 2,000
(Iv) Price per unit of output (f) 10
M Net change In stocks (f) (-) 50
(VI) Intermediate cost (f) 10,000
Ml) Subsidy (f) 500
•tmport duty given In the question earlier has been replaced by GST.
f 9,4S0
 Introductory Macro~0 flornic:s

9. On the basis of the given data, estimate the value of Net Value Added at Factor Cost (NVAFC):
{CBSE, Delhi & Al Comptt.
20241
Particulars { in crore
(i) Sales
(II) Change in Stock --
1,00()
150
~
(Ill) Purchase of Raw Material
(iv) Gross Investment ----
100
(v) Net Investment
(vi) Net Indirect Taxes - 80

-
20
f810crore
10. Calculate Net Value Added at Factor Cost (NVAFc) from the following data: {CBSE, 2024 (58/513)}
.~ . ,::
- t' , - ,r

Particulars . -.... • . -:.:Jr":''~_,+'-r ~, ~:'""~ :· { in Lakh

(i) Fixed capital goods (expected life span - 5 years) 15
(ii) Domestic Sales 220
(iii) Change in stock (-) 10
(iv) Exports 10
(v) Single use producer goods 100
(vi) Net indirect taxes 20
f97 /akh
11. Calculate 'Sales' from the following data: {CBSE, All India 2013}

(i) Subsidies 200

(ii) Opening stock 100
(iii) Closing stock 600
(iv) Intermediate consumption 3,000
(v) Consumption of fixed capital 700
(vi) Profit 750
(vii) Net value added at factor cost 2,000
t 5,000 /o/chS
12. Suppose firm A sold timber produced in Its forest to firm B for, 1,000 and firewood to consumers fortuel
for? 500. Firm B converted logs into slippers and partly sold them to furniture making firm C for' 800 and
the remaining to private consumers for, 700. Firm c sold furniture worth, 1,000 to private consu~
and the remaining to a government office for, 500. Calculate: (i) Values added by firm A, firm Band firm
(II) Total value of output. ·
(i) ValueAdded:FirmA = f 1,SOO;Firm 8 = fSOO;Firm C= flOO. (ii)Totalva/ueofoutput•f.fJOO.
c o
1 J. You are given following Information about four producers A, B, and In an economy. A sells' 300wc::.
of his output to B,, 200 worth of his output to C and, 500 worth of output to households. ThesileS~
to A, C and Dare worth, 400,, 200 and f 300 respectively. C sells to A, Band D output worthf 1Ci0
Sales by C to households are worth , 900. D sells to households output worth, 700. His
f 300 while stock worth, 200 remains unsold with D. Estimate the value added by.
Chapter 4 ■ Measurement of National Income

(i) A, B, C and D separately.

(ii) All of them together.
(i} Value added: Firm A = ( 500; Firm B = f 500; Firm c = f BOO; Firm D = f 800. (ii) t 2,600
suppose firm A sold raw material to firm B for f 1,000 and to firm c for f 600. Firm B sold Its product partly
14
• to private consumers forf 800 and the remaining product was exported for,600. Firm c part of its product
to the government for f 500 for public consumption and the remaining product worth, 500 was unsold
stock left with it. (Assume that firm A buys no raw material). (i) Find the value added by firm A, firm Band
firm c. (ii) Total Consumption Expenditure.
(i) Value added: Firm A =f 1,600; Firm B = f 400,· Firm C = ( 400. (ii) Total Consumption Expenditure = f 1,300

15• In an economy, the following transactions take place and the final sale is for private consumption. A, B, C
and o are four industries. A sells to B for f 20,000. B whose value added is f 40,000, sells half of its output
to c and another half to D. C sells all its output to D. D's whose value added is f 30,000, sells all its output
to final product for f 1,30,000. What is value added by C?
Value Added by C = ( 40,000
Practicals on Income Method
16. Calculate National Income.

(i) Mixed income of self employed 200

(ii) Old age pension 20
(iii) Dividends 100
(iv) Operating surplus 900
(v) Wages and salaries 500
(vi) Profits 400
(vii) Employers' contribution to social security schemes 50
(viii) Net factor income from abroad -10
(ix) Consumption of fixed capital so
(x) Net indirect taxes so
National Income = t 1,640 crores
17. Calculate NNP at FC.
Particulars j ~ in crores
(i) Net current transfers from rest of the world 80
(ii) Wages and Salaries 600
Oil) Net Indirect taxes 75
{Iv) Net Factor income from abroad -20
(v) Rent and interest 160
(vi} Corporation tax 40
Cvil) Mixed Income of the self-employed 280
Mil) Undistributed profit 60
(be) Dividend 20
(x) Consumption of fixed capita! 120
NNP,c= f 1,140CIOIIS
 Introductory Macroec
0
'1orriics

18. On the basis o f t h e d at a given below' estimate the value of Gross National Product at Factor Cost (Gt.•,,pre►.
{CBSE, 2024 (SRn ,. •
..., <tJ)J

(i) Wages and Salaries

2,00o
(ii) Rent and Interest
(iii) Corporate Tax
SO()
(iv) Undistributed Profit
30()
(v) Dividend
200
(vi) Depreciation
150
(vii) Net factor income from abroad
(-)SO
? 3,900 crores
19. Calculate GNP at MP.
Particulars •
(i) Indirect tax
(ii) Consumption of fixed capital
100
(iii) Factor Income to abroad
250
(iv) Factor Income from abroad
(v) Rent 320
(vi) Dividend 250
(vii) Mixed Income 220
(viii) Saving of private corporate sector
120
(ix) Interest 200
(x) Subsidies 100
(xi) Compensation of employees 200
(xii) Corporate tax 500
400
GNP at MP= (1,960 crores
20. Calculate"Gross National Product at Market Price" from the following data:
{CBSE, All India 2013)

Compensation of employees
(ii) Interest
(iii) Rent
(iv) Profits 700
800
(v) Employers' contribution to social security schemes
(vi) Dividends 201
300
(vii) Consumption of fixed capital
100
(viii) Net indirect taxes
250
(ix) Net exports
70
(x) Net factor income to abroad
150
(xi) Mixed Income of self-employed
1~
, s,100 "°"
 Measurement of National Income

-~
pte'' •
Cit' . h
data given below, prove t at 'Net Value Added at Factor Cost' Is equal to 'Income Generated~
J1• ~rc .
p .,icLI l
• o~nlng stock 200
Ol sing stock 400
(II) Clo e of raw materials 300

, (Iii) purchaS
rw) cory~
(v)
sates
.v,rate tax

un
di tributed pro ,ts
s
fj
1,200
100
SO
('Ii)
('liil Dividends
(viiil Rent
1!oo
100
('><) lntere~s'.!.t- -- - - - - - - - - - - - - -- - - - - - - - - - + - - - - =~ ~
;x) Depreciation 200
(xi) Indirect taxes 1SO
(xiil subsidies • 50
... Wages and sa 1arres 350
(xur) Net Value Added at Factor Cost= Income Generated= ( 800 crores
the following data, show that Net Value Added at factor Cost (NVAFc> is equal to the sum of factor
22, From
income: {CBSE, Delhi & Al Comptt. 2023}

·(i) Consumption of Fixed Capital

(ii) Imports of raw material 120
(iii) change in stock 240
(iv) Goods and Services Tax 60
(v) Domestic sales 2,160
(vi) Distributed profits 180
(vii) Retained earnings 120
(viii) Purchase of raw material 840
(ix) Exports 240
(x) Rent and Royalty 90
(xi) Compensation of employees 720
(xii) Interest 540
Net Value Added at factor Cost = Factor Income = ( 1,650 Crores
Hints: • 'Imports of raw material' will not be included separately as it is a part of Purchase of raw material.
• 'Exports'will be included as domestic sales are given.

Practicals on Operating Surplus and Compensation of Employees

~· Calculate operating surplus. ·· · · -- -~· ·· · · ·
rarticulars
~ in crores
5 o employees
25
income 175
100
d
40
tetax 30
80
 Introductory Macroecan0 .....
••ilts

(v\i) Royalty 40
130
(viii) Interest
(ix) Employers' contribution to social security schemes
-
Operatmg Surplus- f350cr,o
---
---
30
res
' {CBSE, 2022 (58/5/1) Term-iJ
23a. From the following data, calculate the value of operating surplus:

(i) Royalty 5
75
(ii) Rent
(iii) Interest
30
(iv) Net domestic product at factor cost
(v) Profit 45
(vi) Dividends 20
Operating Surplus = f 155 crores

23b. From the following data, calculate the value of compensation of employees (COE): {CBSE, 2022 (58/5/ 1) Term-2}

(i) Old age pension 2,000

(ii) Wages and salaries in cash 60,000
(iii) Rent free accommodation to employees 30,000
(iv) Employer's contribution to provident fund 7,500
(v) Payment of life insurance premium by the employees 2,500
(vi) Contribution to provident fund by employees 35,000
Compensation of Employees= ~97,500crores
24. Calculate the value of operating surplus.

(i) Value of output 800

(ii) Intermediate consumption 200
(iii) Compensation of employees 200
(iv) Indirect taxes 30
(v) Depreciation 20
(vi) Subsidies so
(vii) Mixed income 100
Operating Surplus = f 300 ,rares
25. Calculate the operating surplus from the following data: {CBSE, 2022 (5814/1) Term-2/

(i) Compensation of Employees 300

(II) Indirect Taxes 200
(Iii) Consumption of Fixed Capital 100
(Iv) Subsidies SO
(v) Gross Domestic Product at Factor Cost (GDPFC!):___ _ _ _ _ _ _ _ _ _ _..i..--:::::650~
Operating Surplus• flJOCJOld
 Measurement of National Income
4 1
""pte'
e operating surplus and compensation of employees
26. caiculat ·

(I) Indirect taxes

(ii) oepreciation 200

-~~ w
~~ ~
M~~~ ~
(vi) Gross domestic product at MP l,800

(viil Interest 50
(viii) Rent 100
(ix) Net factor income from abroad (-) 40
Operating Surplus = f 370 crores; Compensation of employees = ( 1,0~0 crores

Practicals on Expenditure Method

27, Calculate GNP at MP.

(i) Personal consumption expenditure 27,500

(ii) Government consumption expenditure 3,000
(iii) Gross domestic fixed capital formation 2,500
(iv) Import of goods and services 500
(v) Net factor income from abroad -250
(vi) Subsidy 250
(vii) Fall in stock 300
(viii) Export of goods and services 450
(ix) Depreciation 1,000
(x) Net indirect taxes 1,000
GNP at MP= (32,400 crores

28. On the basis of given data, estimate the value of National Income: {CBSE, 2024 (58/3/1 )}

(i) Government Final Consumption Expenditure 110

(ii) Private Final Consumption Expenditure 200
(Ill) Gross Domestic Fixed Capital Formation 30
(iv) Net Exports (-)40
M Increase in Stock 20
(vi) Consumption of Fixed Capital 15
MO Indirect Taxes 60
MIi) Subsidies 15
(Ix) Net Factor Income from Abroad (-)40

f220crores
 v~o,
Introductory Macrru....

Particulars
Private Final Consumption Expenditure
(ii) Government Final Consumption Expenditure
Ilia ,,
(iii) Gross domestic Capital formation
(iv) Net Exports
(v) Net Factor income from abroad
(vi) Consumption of fixed capital 200
(vii) . Net indirect tax so
National Income= f 3 350
' crores
, On the basis of the data given below for an imaginary economy, estimate the value of Net Domestic Proc:tuct
30
at Factor Cost (NDPFe): {CBSE, 2024 (5811!2)}

(i) Gross Domestic Fixed Capital Formation 300

(ii) Exports 70
(iii) Government Final Consumption Expenditure 400
(iv) Consumption of Fixed Capital so
(v) Household Final Consumption Expenditure 590
(vi) Inventory Investment (Net) {-)60

(vii) Imports 80
(viii) Net lndirectTaxes so
(ix) Net Factor Income from Abroad 40
f 1, 120crores
Miscellaneous Practicals
31. Calculate National Income by Income and Expenditure method.
Particulars : . .' ' ,-,..,''-·tf~ ~ - -
· ~.. · ◄ ·t:. ';,"•if~~f\t !,-
-~~
7t·L: :· '···
~
. ~ ~ ;'\- '·': ,. ~ in crores
.. . ' .. :.. :· ~f •.,. .........
_

(i) Compensation of employees 1,200

(ii) Net factor income from abroad (-)20
(iii) Net indirect tax 120
(iv) Profits 800
(v) Private final consumption expenditure 2,000
(vi) Net domestic capital formation 770-
I

I (vii) Consumption of fixed capital 130

(viii) Rent 400 -

,
,)
.'!
J
(ix) Interest . 620_
l
(x) Mixed income of self employed 700-
(xi) Net exports (-)30 _
(xii) Government final consumption expenditure 1,100-
National lncom1 • f 3,1(J()CfOIIS
 er 4 • Measurement of National Income
Ch•Pt
From the following data, calculate "National Income" by (a) . .
32, income method and (b) expenditure method:
{CBSE, All India 2009}

Interest
(ii) Rent ___ _ __ _ 150

(iv) Private fin~~~nsum~tio~ e~~n~J ur:._

{V) Profi~ --
') ~ pensation of employees
--~=-·-----
(iii) Government final consu~p tion expen_dlture

--- --- --- -l- .

250
600
1,200
( 640
VI -----------
(vii) Net factor !!'come to abroad ·--- ---- ---- ---!--- 1,000

(viii) Net indirect taxes · - - - - - - - - - - -- - - - - - 30

- -
(ix) Net exports _ _ _ _ _ _ 60
(x) Con~ _tion of fixed capital ---- ---- ---- ---- --1 --- (-)40

(xi} N..:t domestic c~pital_for~ ation --·--- ------ 1· 50

--- --- -- --- -- 340

Natlonal Income== f 2,010 crores
33, calculate National Income by Income and Expenditure method .
.
..
., .., -
Particulars . -
•··. ~ in crores
(i) Compensation o f emp oyees
600
(ii) Government final consump tion expenditure
550
(iii) Net factor income from abro~ d
--- (-) 10
(iv) Net exports
(-) 15
(v) Profit
400
(vi) Net indirect tax
60
(vii) Mixed income of self employe d
350
(viii) Rent
200
(ix) Interest
310
(x) Private final consumption expendit ure 1,000
(xi) Net domestic capital formation 385
(xii) Consumption of fixed capital 65

National Income == f 1,850 crores

34, Calculate National Income by income
method and expenditure method.
Particulars I ~ in crores
(I) Government final consumption expenditure 100
(ii) Interest, rent and profits 920
~ Capital formation 620
~ Net exports (-) 10
(v) Change in sto~k 100
~ l} et F; ;ori nZo~e fro~ ~ broad (-) 10
(~ii) ~ubsidies 20
 Introductory Macr~

(viii) Private Final Consumption expenditure 80o

(Ix) Indirect tax ~
(x) Consumption of fixed Capital ~
----......
(xi) Mixed income of the self employed 60
(xii) Compensation of employees
National Income -
37a'
---..
l 1,340 crores
35. Calculate National Income by Income and Expe nd iture meth0 d.
Particulars tin crores
(i) Government final consumption expe nd iture
(ii) Indirect tax
(iii) Gross fixed capital formation 13,248
(iv) Mixed income of the self employed 28,267
(v) Subsidies 1,120
(vi) Change in stock 3,170
(vii) Rent, interest and profits 9,637
(viii) Consumption of fixed capital 4,046
(ix) Private Final Consumption expenditure 51,177
(x) Imports of goods and services 5,674
(xi) Exports of goods and services 4,812
(xii) Net factor income from abroad (-) 255
(xiii) Compensation of employees 24,420
National Income= f 62,069crores
36. Calculate National Income by Income and Expenditure method.
.
Particulars
. .- .~.i'~~~- -
.. ,.~-'~\~i~~~.;~
I tin crores
(i) Rent
1,500
(ii) Net factor income from abroad
so
(iii) Wages and salaries
25,000
(iv) Indirect tax
1,000
(v) Government final consumption expenditure
11,200
(vi) Subsidies
300
(vii) Royalty
(viii) Net exports
(ix) Interest
{x) Corporate tax
{xi) Profit after tax
{xii) Households final consumption expenditure 2
{xiii) Change in stock .
(xiv) Net domestic fixed capital formation
(xv) Fina Iconsumption expenditure of private non-profit Institutions serving households

Nationol lncomt• '

 • Measurement of National Income
,,,,pte''
National Income by Income and expenditure method.
,1. calculate

Hllllill..,.·- ent final consumption expenditure

I) Gover~nm~~::.::.::..=.:- -- .c.__----'- - - - - - - - - - - - - - - -+ - - - - = = - ~
( 150
(ii) Rent - - - - - -- - - - - - - - - - - - - - - - - - --+----..:=:.::.....-f
W
Op~~~k
~ M
(iv) rntere~s~t- - -- - - - - -- - - - - - - - - - - -- - - - - + - - - _ _ _ : = - - 1
70
.
fi -----::--:---:-==:=-=;;=:-----
M pro>_!!l~t
final consumption expenditure
- - - -------+----_:_:=----j
480
(vi) Private .
.. G ss fixed capital formation 90
(vu) ,~ro~~~.=!:...--- - - - - - -- - - - - - - - - - -- - - - - ~ - - - - = - = - - - 1
...) Closing stock 35
(VIII
(ix) Net exports (-) 5
(x) Net indirect taxes 60
(xi) compensation of employees 200
{xii) Consumption of fixed capital 20
{xiii) Mixed income of self employed 50
{xiv) Net factor income from abroad 20
National Income= f 570 crores
3s. Calculate National Income by Income and Expenditure method.

{i) Opening stock 50

{ii) Profit 60
(iii) Closing stock 10
(iv) Interest 500
(v) Consumption of fixed capital 20
(vi) Private final consumption expenditure 460
(vii) Mixed income 100
{viii) Net exports (-) 10
Ox) Net factor income from abroad (-) 5
(x) Compensation of employees 300
(xi) Net capital formation 500
{xii) Net indirect taxes 20
!xiii) Gover ft 100
• nment mal consumption expenditure
(xiv) Rent
70
National Income = f 1,025 crores
39, Calculate NNP
,. at FC by Income and Expenditure method.

(I) Mixed I
(if) G ncome of self employed 100
rossflx d ·
(Ill) Pt1 e capital formation 300
vatefinal
{Iv) Net consumption expenditure 900
exports (-)50
 Introductory Macroecon°"

(v) Subsidies so
(vi) Government final consumption expenditure -
1So'
(vii) Rent 6()
(viii) Indirect taxes 250
(Ix) Interest ~
----...
(x) Change in stocks so
(xi) Compensation of employees ~
(xii) Profit ~
(xiii) Consumption of fixed capital ---
so
(xiv) Net factor income from abroad ----
so
NNPat FC = f 1,150crores
40. Calculate GNP at MP by Income and Expenditure method.
Particulars ~ ~....~ .-t=:·~;·,-£~;~11~¥·./~-:·~- .. fin crores
(i) Net exports 15
(ii) Private final consumption expenditure 600
-
(iii) Consumption of fixed capital 30
(iv) Operating surplus 190
(v) Net indirect taxes 105
(vi) Net factor income from abroad (-)S
(vii) Wages and Salaries 520
(viii) Rent 60
(ix) Employers' contribution to social security schemes 100
(x) Government final consumption expenditure 200
(xi) Net capital formation 100
GNPatMP = f940crores
41. Calculate the value of Domestic Income from the following data: {CBS£, 2023 (5815/1)}
.. ' ;
Particulars : >! : !_),~ -. ". '
tin crores
(i) Rent and Royalties 1,300
{ii) Net Indirect Taxes 200
(iii) Wages & Salaries (in cash & In kind) 1,700
{Iv) Corporate Tax 400_
{v) Depreciation 400 -
{vi) Retained Earnings
300 -
(vii) Dividends 400~
(viii) Net Factor Income from Abroad (-)120~
(Ix) Mixed Income of Self Employed 1,400~
(x) Change In Stock (-)200___

Domatlc lncomt• f
 • Measurement of National Income
ch•Pter4
e gross national product at factor cost from the following data by (a) Income method and
calcu Iat
42• (b) expenditure method. (CBSE, De/hi 2002}

(O wages and salaries

. ed income of self-employed 160
~•x~.::.::.:..:.:.:~----------- -----------+----.:.:..:~
(Ii) M
(iii) Operating surplus 600
(iv) Undistributed profit~ 150
(v) Gross capital formation 330
(vi) Change in stocks 2S
(vii) Net capital formation 300
(viii) Employers' contribution to social security schemes 100
(ix) Net factor income from abroad (-) 20
(x) Exports 30
(xi) Imports 60
(xii) Private final consumption expenditure 1,000
(xiii) Government final consumption expenditure 450
(xiv) Net indirect taxes 60
(xv) Compensation of employees paid by the Government 75

Note: Consumption of Fixed Capital is calculated as the difference between (v) and (vii) item.
Gross National Product at Factor Cost= f 1,670 crores

43. Calculate GDPMP by income method and National income by expenditure method.
I

Particulars _ ·._,:.j_~J~J.\·:iF':_._·,: I tin crores

(I) Mixed income of the self employed 260
(ii) Rent, Interest and profit 290
(Iii) Interest on national debt 40
(iv) Government final consumption expenditure 220
_ {v) Imports 170
Jvi) Exports 140
(vii) Priv t fi . . 1,530
- a e anal consumption expenditure
~ Change in stock 100
(be) Comp • 730
,..__;___ ensatIon of employees
{x) Netta t -10
~ c or Income from the rest of the world
(xi) Consu I 120
~ mpt on of fixed capital
~sidles 30
(xiii) Gross f1
~ Xed capital formation 400
Indirect taxes 850

GOPMP by Income method . f 2,220 crores,·NNP,c by Expenditure method• t' 1,210 aoteS
 4.120 Introductory Macro

44. Calculate GDP at MP by Income method and National income by Expenditure method.
rdn1cu1a rs
(i) Compensation of employees
(ii) Indirect taxes
-
~ in cror"-S
13,00o
3,700
(iii) Gross fixed capital formation 8,100
(iv) Interest, rent and profit
(v) Government final consumption expenditure 3,60()
(vi) Mixed income of self employed 16,000
(vii) Change in stock 1,000
(viii) Imports of goods and services 1,800
(ix) Exports of goods and·services 1,700
(x) Private final consumption expenditure 27,000
(xi) Subsidies 300
(xii) Net factor income from abroad H2S0
(xiii) Consumption of fixed capital 2,200
GDPMP by Income Method= f 39,600 crores; and National Income by Expenditure Method= r 33,750 crores
45. Calcuiate GDP at MP by Income method and National Income by Expenditure method.
Particulars ~;~~ ~:r.~:; .;_. '.
,,-,,J,· '• ,1.1,,..'
_j:-,,.---
~J. ... , tin crores
(i) Compensation of employees 490
(ii) Private final consumption expenditure 1,120
. (iii) Net factor income from the rest of the world (-) 10
(iv) Net fixed capital formation 180
(v) Consumption of fixed capital
80
(vi) Indirect taxes
180
(vii) Current transfers from government to households
20
(viii) Change in stock
60
(ix) Mixed income of the self employed
560
(x) Government final consumption expenditure
150
(xi) Subsidies
20
(xii) Exports
100 -
(xiii) Imports
110
(xiv) Rent, interest and profit 290
GDPMP by Income Method = f 1,580 crores; and National Income by Expenditure Method= r 1,330 ,rares
46. Calculate GDP at Factor cost by Income and Expenditure method.
Particulars I ~ in crores
(1) Personal consumption expenditure 730
{ii) Wages and Salaries 700
(111) Employers' contribution to social security schemes
(iv} Gross business fixed investment
 ■ Measurement of National Income
Chapter4

(V) Profit 100

~ Gross residential construction investment. 60
~ Government purchases of goods and services 200

---
i----::) Gross public investment 40
(VIII
(ix) Rent 50
(x) Inventory investment 20
(Xi) Exports 40
(Xii) Interest 50
(xiii) Imports 20
(xiv) Net factor income from abroad (-) 10
(xv) Mixed income 100
~(xvi) Depreciation 20
(xvii) Subsidies 10
(xviii) Indirect taxes 20
Note: Gross Domestic Capital Formation 1s calculated as: Gross business fixed investment + Gross residential
construction investment+ Gross public investment+ Inventory investment
GDP at FC = r 7,720 crores
47, Calculate National Income by Income and Output method.
Particulars :--;:;.1~t::.:: :, ;· I ~ in crores
(i) Value of output of primary sector 1,000
(ii) Value of output of secondary sector 800
(iii) Value of output of tertiary sector 600
(iv) Intermediate consumption of primary sector 400
(v) Intermediate consumption of secondary sector 300
(vi) Intermediate consumption of tertiary sector 100
(vii) Emoluments of employees 500
(viii) Rent 40
(ix) Consumption of fixed capital 80
{x) Indirect taxes 30
_ (xi) Net factor income from abroad 10
Jxii) Subsidies 10
~Iii) Interest 50
Jxiv) Rent, Rates, and Interest 200
~) Mixed Income 800
Note: Em0 I . of emp,oyees.
,
uments of employees' is another name for compensation
National Income= f 1,510 crores
48 Cal .
• culate National Income by Income method and Production method.
Pdrt1cular!>
~ in crores
o rm
of output of seconda sector
 Introductory Macroec

(iii) Value of output of tertiary sector 10()

(iv) Intermediate consumption of primary sector ~
(v) Intermediate consumption of secondary sector s;--
(vi) Intermediate consumption of tertiary sector S()
-::---..
(vii) Emoluments of employees 150
:--
(viii) Net factor income from abroad
(ix) Operating surplus
(x) Consumption of fixed capital
---
{-)10

----
140
40
(xi) Net indirect tax
(xii) Interest ---20
20
(xiii) Mixed income
(xiv) Rent 10 --
so

-··-.
Nat,onal Income = f 330 crores
49. Calculate GDP at MP by value added method and income method.
J ('~ _, " ~. ... -· ,i.,
Particulars -·, .· ?r-i
~ "r~.,r ... fin crores
(i) Intermediate consumption of primary sector 500
(ii) Intermediate consumption of secondary sector 400
(iii) Intermediate consumption of tertiary sector
300
(iv) Value of output of primary sector
1,000
(v) Value of output of secondary sector
900
(vi) Value of output of tertiary sector
700
(vii) Rent
10
(viii) Employee compensation
950
(ix) Profits
285
(x) Net factor income from abroad
(-)20
(xi) Interest
5
(xii) Depreciation
40
(xiii) Net indirect taxes
10
(xiv) Mixed income
100
GDPatMP = f 1,400 ao,es
SO. Calculate (a) Gross domestic product at market price and (b) Fact • f b df th ~ 110Wt·ng
data· • or income rom a roa rom e ,,0
. ~£M~-
Particulars
z in cro,c~
i'
I (ii) Exports
(Iii) Compensation of employees

I
(Iv) Gross national product at factor cost
(v) Net current transfers from rest of the world
(vi) Rent
 • Measurem ent of National Income
Chlpter 4

(\Iii) interest 400

~ o r income to abroad 120
(\'iii) a
~ indirect taxes 250
(IX
~ domestic capita Itorma t'10n
.
(X) e .
650
~ s s fixed capital formation 700
(xi) ro
~ange in stock 50
(XII
L.,...:---
(a) ( 3,050 crores, (b) ( 120 crores
Find out Gross National Product at Market Price from the following data: {CBSE, Delhi 2011 (II)}
51
partkulars
··, -·-~ .:,;,.,~.;,~y.
-~_,,. <~'iA'.fil: l'-.. . ··.l:f'·
'7.
. - - ,i:._:_~.q~~~ · -
J~•&~'"':' ·
\.,,;~ -: R Arab)
(i) opening stock 50
m, Private final consumption expenditure 1,000
Oiil Net domestic fixed capital formation 150
-(iv) Closing stock 40
.
- (v) Net factor income to abroad (-)10
(vi) Government final consumpti on expenditur e 300
(vii) Consumption of fixed capital 30
(viii) Net imports 20
(1,460 Arab
52. On the basis of the given data, estimate the value of Domestic Income: {CBSE, Sample Paper 2023-24}
. . ·.,j_F~ . .
,.(~:~JI~.it-11.:.:~ ~
Particulars .. .~.
(i) Household Consumpti on Expenditur e
-ie~ irf'",t-:~ff"'. :(!,.~r!/ ..~ ... --~...
• • .;,
• .••
l
., .
I Rin aore)
600
(ii) Gross Fixed Capital Formation
200
(iii) Change in stock 40
(iv) Government Final Consumpt ion Expenditur e
200
(v) Net Exports
(-) 40
(vi) Net Indirect Taxes
120
Jvii) Net Factor Income From Abroad
20
(viii) Consumption of Fixed Capital
40
Domestic Income == f 840 crore
53
' From the following data relating to an economy, calculate national income by expenditur e, income and
value added method.

(I) Interest
40
00 Value of output:
Primary sector 1,000
Secondary sector 500
Tertiary sector 450
(IIQ Com~= ::-.. :.:.:
Pensatlon of employees
.:--- ----- ----- ----- +---...:::!.~ 245
 Introductory Macroecono
4.124 Illies .

(iv) Net factor Income from abroad Hs

M Private final consumption expenditure ~
-....;,,..,
(vi) Intermediate cost:
~
Primary sector
-:.!..
310
Secondary sector --:-.;;.....
Tertiary sector 265
--.;;_
(vii) Rent and royalty 25
(viii) Government final consumption expenditure
(ix) Gross domestic fixed capital formation -------
-----75
130
(x) Opening stock
(xi) Profit ---- 40
30
(xii) Closing stock
(xiii) Net exports
(xiv) Net Indirect Taxes
--
70
(-) 5
80
-
(xv) Consumption of fixe·d capital 40
(xvi) Mixed income of self-employed 285
National Income= f 620 crores
54. Estimate the value of Net National Product at Factor Cost (NNPFc), using the following information:
{CBSE, 2024 (5814/1)1
'•"' -~··•--. ..~~-
Particulars .
-
.: ~'.~~}~~ -~: (t in crores)
(i) Household Consumption Expenditure 1,200
(ii) Business Fixed Investment Expenditure
800
(iii) Government Final Consumption Expenditure
500
(iv) Excess of Imports over Exports
100
(v) Net Indirect Taxes
150
(vi) Change in Inventory
(-)50
(vii) Consumption of Fixed Capital
200
(viii) Net Factor Income from Abroad
80 -
(ix) Public Fixed Investment
70
i 2, 150 ,rares
55. Find out Net National Product at Market Price: (CBSE Delhi 2012 (II)}
Particulars \ t in crores
(1) Interest 400
(ii) Wages and Salaries 1,000
(iii) Net factor income to abroad (-) 20
(iv) Social security contributions by employers 100
(v) Net indirect tax 80

(vii) Consumption of fixed capital

i-:-_.;. ._----=---- - - ! . . - - - - ~ - - - - - - - ----1 ----;120so
(viii) Corporation Tax
 • Measurement of National Income
Ch•Pter4
200
) Divlde~n~d- - - = - - -- - - -- - - - - - - - - - - --+-------:-:--1
(I>< d" tributed profits 60
(id Un is
Net National Product at Market Price = f 2,210 crores
oss National Product at Market Price: {CBSE, All India 2012 (I)}
Find out Gr
56,
· t final consumption expenditure
(i) priv~a~e~~::_:_:.::.___:._- - - - - -- - - - - - - - - -- -
--f---.....:..:.:.:..::-f
(ii) Depreciation 100
tct,~ac~t~o:_:ri: . .:n.:..
co .:...m
_ e_to _ r_o_a_d_ _ _ _ _ _ _ __ _,__ _ _ _ _ _ _ _ _+ ___.:..<-.:...>...:..1.:..0---i
_ ab
(iii) Ne =--
(\1)
1
Closing stock 20
G ernment final consumption expenditure 300
M ov
(vi) Net indirect tax 50
(vii) opening stock . . 20
...) Net domestic fixed capital formation 11 o
(VIII
(ix) Net exports 15
Gross National Product at Market Price = r 1,535 crore
{CBSE, Delhi 2014 {I)}
57, Calculate National Income.

(i) Net domestic capital formation 110

(ii) Private final consumption expenditure 600
(iii) Subsidies 20
(iv) Government final consumption expenditure 100
(v) Indirect tax 120
(vi) Net imports 20
(vii) Consumption of fixed capital 35
(viii) Net change in stocks (- ) 10
(ix) Net factor income to abroad 5
National Income= f 685 Arab
58• On the basis of the data given below for an imaginary economy, estimate the value of Net Domestic Product
at Factor Cost (NDPFe>· {CBSE, 2023 (58/2/1)}

(I) Household Consumption Expenditure 2,000

(ii) Govern ·
ment Final Consumption Expenditure 1,500
(iii) Gross D •
omest1c Fixed Capital Formation 1,000
Ov) Net additions to stock 300
M~ ~
(VI) Ni i::;;:=-::-- - - - - -- - - - - - - -- - ----+---_;_::..-,
e Indirect Taxes 350
(VII) lrnPort.,;:s;--..:.:.._ _ _ _ _ _ _ _ _ __ _ _ _ _ __ _ _ +--~-:-:--;
~~ .
sumptlon of Fixed Capital
~
250
 Introductory Macroeco'10rnrq

~ in Arab
Particulars
(i) Closing stock
(ii) Consumption of fixed capital 40
(iii) Private final consumption expenditure
(iv) Exports
so
20
(v) Opening stock
100
(vi) Government final consumption expenditure
60
(vii) Imports
80
(viii) Net domestic fixed capital formation
30
(ix) Net factor income to abroad
NNPMP= f730Arab
{CBSE, Delhi Comptt. 20141

' "' ,rures

Particulars
(i) Net domestic capital formation
(ii) Government final consumption expenditure
(iii)Net factor income from abroad
(iv) Private final consumption expenditure 600
(v) Depreciation 30
(vi) Net exports 50
(vii) Net indirect taxes 90
(viii) Net current transfers from rest of the world 40

' I
61. Calculate national income:
•
Particulars
-
·. _
; \~it(::'£~.,.
_, ·, ,t ~•w
•• • • • • ;...i:_ ••• •
_____ National Income= (990 Crore
_.,,..,,..,.......,...,...
{CBSE, All India Comptt. 2014}

(i) Net current transfer from rest of the world 30

(ii) Private final consumption expenditure 400
(iii) Net domestic capital formation 100
(iv) Change in stock 50
(v) Depreciation 20
(vi) Government final consumption expenditure 200
(vii) Net exports 40
(viii) Net indirect taxes 80
(Ix) Net factor income paid to abroad 10
National Income= l6500olf
62• From the following data relating to an economy, calculate (a) National income using Expenditure Methc>di
(b) National income using Income Method.
Particulars :_ in crorl•~
(I) Government final consumption expenditure
(ii) Gross fixed capital formation
 ■ Measurement of National Income
Ch•Pter4
2,800
rt of goods and services
Oli) Expo {-)9
~ mpensation of employees from abroad
v) Netco
~ operty and entrepreneurial income from rest of the world (-) 316
M Netpr 2,323
~ n g e in stock
3,023
¾onsumption of fixed capital
~~~ · expen dl
ate final consumption I ure 42,865
(Viii) r,V .
3,177
~ port of goods and services
(ix) m
5,168
WNet indirect taxes
~ Compensation of employees 17,818
6,890
~ Operating surplus
~i) Mixed income of the self employed 26,041

-
..·•-~•c·· ..
(a) ~50,424 crores; (b) f 50,424 crores

• From the following information, calculate GNPMP by income and expenditure methods.
63
particulars
.. ....
,_:;,-'.:.,
~ -. ) ,~~
~"''1-""•:,.._y·-. .. -'
"'i./;)J. """"'" • ~.... ' - • / . I ~ in crores

(i) Personal consumption expenditure 2,940

(ii) Social security contribution by Employers 108

(iii) Net indirect taxes 216

(iv) Interest 156

(v) Government expenditure on goods and services 864

(vi) Rent 168

(vii) Undistributed profits 252

(viii) Dividends 192

(ix) Wages and salaries in cash 2,544

{x) Tax on corporate profits 228

(xi) Net domestic investment 396
(xii) Depreciation 324
{xiii) Net exports 36
(xiv) Income of the self-employed 372
~ (xv) Net factor income from abroad 15
GNPMP = f 4,575 crores
64 {CBSE, Delhi 2015 (II)}
• Calculate Gross National Product at Market Price.

(I) Rent 100

(II) Profit 200
(ilO Social security contribution by employers
(iv) 47
Ml>eed income 600
(~ Gross domestic capital formation 140
.,, atty 20
<vtO Interest 110
 lntrod uctory Macroecon
°"'IQ

(viii) Compensation of employees soo

(ix) Net domestic capital formation ~
~
(x) Net factor income from abroad H10
(xi) Net indirect tax ~
~
Gross National Product at Market Price= f 1,690 Crore

65. Calculate Net Domestic Product at Factor Cost: {CBSE, Delhi 201s (116}
~ i., uores
Particulars
(i) Exports
(ii) Private final consumption expenditure
(iii) Net imports
(iv) Net domestic capital formation 100
(v) Net factor income to abroad 10
(vi) Depreciation so
(vii) Change in stocks 17
(viii) Net indirect tax 120
(ix) Government final consumption expenditure 200
Net Domestic Product at Factor Cost= f 1,000Crore
66. Calculate Net Domestic Product at Market Price: {CBSE, All India 2015 (Ill)}
.. ,.. . . ,._ .. @ •, . , .•-c~-· .
I
,>
.~ ' ?...,~~ ~ - !,,,, ~ ~i!; : .
Particulars "
r •:.,
:· ~ ,,;._.:7 >9,;.t~i?t~
•
r,-'•,...._ tin crores
(i) Private Final Consumption Expenditure 400
(ii) Opening stock 10
(iii) Consumption of Fixed Capital 25
(iv) Imports 15
(v) Government Final Consumption Expenditure 90
(vi) Net factor income to abroad (-)5
(vii) Gross Domestic Fixed Capital Formation 80
(viii) Closing stock 20
(ix) Exports 10
Net Domestic Product at Market Price= t 550 Crote
67. Calculate Net National Product at Market Price. {CBSE, Foreign2015(/II)}
Particulars / ~ in crores
(i) Net Factor income to abroad (-) 10
(ii) Social security contributions by employees 11
(iii) Consumption of fixed capital 40
(Iv) Compensation of employees 700
(v) Corporate tax 30
(vi) Undistributed profits
(vii) Interest