Question

Calculate national income and operating surplus from the following data:

(i) Government final consumption expenditure	800 crores
(ii) Net factor income earned from abroad	-110 crores
(iii) Private final consumption expenditure	900 crores
(iv) Net domestic capital formation	200 crores
(v) Profits	220 crores
(vi) Rent	90 crores
(vii) Net exports	-25 crores
(viii) Interest	100 crores
(ix) Net indirect taxes	165 crores

Answer 1

Operating surplus = Rent + Interest + Profit = 90 + 100 + 220 = 410 National Income = Government final consumption expenditure + Private final consumption expenditure + Net domestic capital formation + Net exports + Net factor income earned from abroad

National Income = 800 + 900 + 200 + (- 25) + (-110) = 1900+ (-135) = 1765