Calculate GDP at MP by-a Expenditure methodb Income method beginarray 11-ii - - text Operating Surplus - 5011iii - text Subsidies - 5 iv - - text Mixed income - 60 lvi - - text Social security contributions by employees - 10 -vii - text Net factor income from abroad - 0viii - - text Indirect tax - 30 1x -ltext Compensation of employees - 0 1xii - - lendarray

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Adjusting for Inflation

Calculate GDP...

Question

Calculate GDP at MP by:

(a) Expenditure method

(b) Income method

$\begin{matrix} (i) & Net domestic fixed capital formation & 50 (i i) & Operating Surplus & 50 (i i i) & Subsidies & 5 (i v) & Mixed income & 60 (v) & Pvt. Final consumption expenditure & 120 (v i) & Social security contributions by employees & 10 (v i i) & Net factor income from abroad & 0 (v i i i) & Indirect tax & 30 (i x) & Addition to stocks & 5 (x) & Compensation of employees & 70 (x i) & Government final consumption expenditure & 25 (x i i) & Net exports & 5 \end{matrix}$

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Solution

(a) By Expenditure method
$G D P_{m p} = (i) + (v) + (x i) + (x i i) + (i x) = 50 + 120 + 25 + 5 + 5 = R s . 205$

(b) By Income method
$N D P_{f c} = (i i) + (i v) + (x) = 50 + 60 + 70 = R s . 180$

$G D P_{m p} = N D P_{f c} + D e p . + N I T 180 + 0 + (30 - 5) = R s . 205$

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Similar questions

(a) From the following data compute net value added at factor cost:

$\begin{matrix} Items & Domestic sales & Subsidies & Purchase of raw material & Exports & Depreciation & Import of & Net in domestic market & indirect taxes In Crores & 2500 & 40 & 500 & 200 & 100 & 600 & 60 \end{matrix}$

(b) Intermediate goods and corporate tax are included in national income indirectly. How ?

Calculate $G N P_{m p}$

(a) By Income Method

(b) Expenditure Method

$\begin{matrix} (a) & Rent & 40 (b) & Private Final Consumption Expenditure & 800 (c) & Net Exports & 20 (d) & Interest & 60 (e) & Profit & 120 (f) & Government Final Consumption Expenditure & 200 (g) & Net Domestic Capital Formation & 100 (h) & Compensation of Employees & 800 (i) & Depreciation & 20 (j) & Net Indirect Taxes & 100 (k) & Net Factors Income From Abroad & (-) 20 \end{matrix}$

(a) Can a truck be an intermediate good? Give reasons for your answer.

(b) Calculate GDP at factor cost by Income and Expenditure method.

$\begin{matrix} S. No. & Items & Rs. in crores (i) & Personal consumption expenditure & 730 (i i) & Wages and salaries & 700 (i i i) & Employer's contribution to social security schemes & 100 (i v) & Gross business fixed investment & 60 (v) & Profit & 100 (v i) & Gross residential construction investment & 60 (v i i) & Government purchases of goods and services & 200 (v i i i) & Gross public investment & 90 (i x) & Rent & 50 (x) & Inventory investment & 20 (x i) & Exports & 40 (x i i) & Interest & 50 (x i i i) & Imports & 20 (x i v) & Net factor income from abroad & (-) 10 (x v) & Mixed income & 100 (x v i) & Depreciation & 20 (x v i i) & Subsidies & 10 (x v i i i) & Indirect taxes & 20 \end{matrix}$

Give reasons, on the treatment assigned to the following while estimating national income:

(a) Expenditure on medicines by a government hospital

(b) Expenditure on medicines by Fortis Hospital

(d) Rent received by Indian residents for their buildings rented out to foreigners in India

Find the Final Gross National Product at Market Price and Private Income:

$\begin{matrix} (Rs. in crores) (i) Private final consumption expenditure & 800 (ii) Net current transfers to abroad & 20 (iii) Net factor income to abroad & (-)10 (iv) Government final consumption expenditure & 300 (v) Net indirect tax & 150 (vi) Net domestic capital formation & 200 (vii) Current transfers from government & 40 (viii) Depreciation & 100 (ix) Net imports & 30 (x) Income accruing to government & 90 (ix) National debt interest & 50 \end{matrix}$

Q. Calculate (a) Net National Product at market price, and (b) Gross Domestic Product at factor cost.

(i) Rent and interest	(Rs. in crores) $6, 000$
(ii) Wages and salaries	$1, 800$
(iii) Undistributed profit	$400$
(iv) Net indirect taxes	$100$
(v) Subsidies	$20$
(vi) Corporation tax	$120$
(vii) Net factor income to abroad	$70$
(viii) Dividends	$80$
(ix) Consumption of fixed capital	$50$
(x) Social security contribution by employers	$200$
(xi) Mixed income	$1, 000$

Q. Calculate (a) National Income, and (b) Net National Disposable Income. (Rs in crores)
(i) Compensation of employees 2,000
(ii) Rent 400
(iii) Profit 900
(iv) Dividend 100
(v) Interest 500
(vi) Mixed income of self-employed 7,000
(vii)Net factor income to abrorad 50
(viii)Net exports 60
(ix) Net indirect taxes 300
(x) Depreciation 150
(xi) Net current transfers to abroad 30

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(a) By Expenditure method GDPmp=(i)+(v)+(xi)+(xii)+(ix)=50+120+25+5+5=Rs.205 (b) By Income method NDPfc=(ii)+(iv)+(x)=50+60+70=Rs.180 GDPmp=NDPfc+Dep.+NIT180+0+(30−5)=Rs.205

(a) By Expenditure method
$G D P_{m p} = (i) + (v) + (x i) + (x i i) + (i x) = 50 + 120 + 25 + 5 + 5 = R s . 205$

(b) By Income method
$N D P_{f c} = (i i) + (i v) + (x) = 50 + 60 + 70 = R s . 180$

$G D P_{m p} = N D P_{f c} + D e p . + N I T 180 + 0 + (30 - 5) = R s . 205$