Question

From the following data calculate “ national income” by Income & expenditure method. 

(i) Interest	150
(ii) rent	250
(iii)GFCE	600
(iv)PFCE	1200
(v) Profits	640
(vi)Compensation of employees	1000
(vii)NFIA	30
(viii) NIT	60
(ix) Net Export	(-) 40
(x) Consumption of fixed capital	50
(xi) NDCF	340

Answer 1

Income Method NNPfc = vi + i + ii + v + vii 

 = 1000+ 150 + 250 +640 + 30 

= 2070 

Expenditure Method 

NNPfc = iii+ iv + xi + x + ix – dep – viii + vii 

 = 600 + 1200 + 340 + 50 + (- 40) – 50 – 60 + 30 

 = 207