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0 votes
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in Economics by (60.8k points)

Calculate National Income by (i) Income Method, and (ii) Expenditure Method from the following data :

(Items) (Rs. in crore)
(i) Profit 200
(ii) Private Final Consumption Expenditure 440
(iii) Govt. Final Consumption Expenditure 250
(iv) Compensation of Employees 350
(v) Gross Domestic Capital Formation 90
(vi) Consumption of Fixed Capital 20
(vii) Net Exports (-)20
(viii) Interest 60
(ix) Rent 70
(x) Net Factor Income to Abroad 50
(xi) Net Indirect Taxes 60

1 Answer

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Best answer

Income Method

NNPFC= Profit + Compensation of Employees +

Interest + Rent - Net Factor Income to Abroad

= 200 + 350 + 50 + 70 - 50

=  Rs. 630 crore.

Expenditure Method

NNPFC = Private Final Consumption Expenditure + Govt. Final Consumption Expenditure + Gross Domestic Capital Formation + Net Exports - Consumption of Fixed Capital - Net Factor Income to Abroad - Net Indirect Taxes 

= 440 + 250 + 90 + (-20) - 20 - (50) - 60 

= 780 - 20 - 20 + 50 - 60

= 780 - 100 + 50

= 780 - 150

NNPFC=Rs.630 crore.

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