Question

Calculate Nominal National Product at Factor cost from the following data:

$\begin{array}{cc}& \\ & \text{(Rs in crores)}\\ \text{(i) Compensation of Employees}& 2,000\\ \text{(ii) Interest}& 500\\ \text{(iii) Rent}& 700\\ \text{(iv) Profits}& 800\\ \text{(v) Employers' contribution to}& 200\\ \text{social security schemes}& \\ \text{(vi) Dividends}& 300\\ \text{(vii) Consumption of fixed capital}& 100\\ \text{(viii) Net indirect taxes}& 250\\ \text{(ix) Net exports}& 70\\ \text{(x) Net factor income to abroad}& 150\\ \text{(xi) Mixed income of self employed}& 1,500\end{array}$

Answer 1

$NN{P}_{FC}$

=(i)+(ii)+(iii)+(iv)+(v)+(xi)+(vii)-(x)+(viii)

= Compensation of employees + Interest + Rent+ Profits + Employers' contribution to social security schemes+Mixed income of self emplotyed+ Consumption of fixed capital - Net factor income to abroad+ Net indirect taxes

= 2,000+500+700+800+200+1,500+100-150+250 = Rs 5,900 crores