Calculate Gross "National Product at Factor Cost by (i) Income Method, and (ii) Expenditure Method, from the following data :
Calculate Gross "National Product at Factor Cost by (i) Income Method, and (ii) Expenditure Method, from the following data :
| (Items) | (Rs. in crore) |
| (i) Private Final Consumption Expenditure | 800 |
| (ii) Government Final Consumption Expenditure | 300 |
| (iii) Compensation of Employees | 600 |
| (iv) Net Imports | 50 |
| (v) Gross Domestic Capital Formation | 150 |
| (vi) Consumption of Fixed Capital | 20 |
| (vii) Net Indirect Tax | 100 |
| (viii) Net Factor Income from Abroad | (-) 70 |
| (ix) Dividend | 150 |
| (x) Rent | 120 |
| (xi) Interest | 80 |
| (xii) Undistributed Profits | 80 |
| (xiii) Social Security Contribution by Employers | 60 |
| (xiv) Corporate Tax | 50 |
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Income Method
GNPFC = compensation for employees + Divided + Rent + interest + undistributed profits + corporate tax + consumption of fixed capital + Net factor income from abroad.
= 600 + 150 + 120 + 80 + 80 + 50 + 20 + (-)70
= 1,100 - 70
GNPFC = Rs. 1,030 crore.
Expenditure Method
GNPFC = Private final Consumption Expenditure + Government Final.Consumption: Expenditure + Net Factor income from Abroad - Net Imports + Gross Domestic capital formation - Net indirect taxes
= 800 + 300 + (-70) - (50) + 150 - 100
= 1,250 - 220
GNPFC = Rs. 1,030 crore.
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