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Question
Calculate the GNP at FC from the following data by using income method and expenditure method:
| No. | Plant | ₹ in crores |
| (i) | Operating surplus | 600 |
| (ii) | Exports | 30 |
| (iii) | Imports | 60 |
| (iv) | Private final consumption expenditure | 1,000 |
| (v) | Net indirect tax | 60 |
| (vi) | Compensation to employer | 900 |
| (vii) | Mixed income of self employed | 160 |
| (viii) | Gross Domestic Capital formation | 330 |
| (ix) | Depreciation | 30 |
| (x) | Net factor income from abroad | (−)20 |
| (xi) | Government final consumption expenditure | 450 |
Numerical
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Solution
1) Income method calculation:
NNPFC (Income Method) = Operating Surplus + Compensation to Employees + Mixed Income of Self Employed + Net Factor Income from Abroad
= 600 + 900 + 160 + (−20)
= 1640 crores
2) Expenditure method calculation:
GNPFC (Expenditure Method) = Private Final Consumption + Government Final Consumption + Gross Domestic Capital Formation + (Exports − Imports) + Net Factor Income from Abroad − Depreciation
= 1000 + 450 + 330 + (30 − 60) + (−20) − 30
= 1700 crores
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