Practice problems

1. From the following about firm ‘X’, calculate Gross Value Added at Factor Cost by it:

Sales 500
Opening stock 30
Closing stock 40
Purchase of intermediate 300
products
Purchase of machinery 150

2. From the following about firm ‘Y’, calculate Net Value Added at Market Price by it:

Sales 300
Depreciation 20
Net direct taxes 30
Purchase of intermediate products 150
Change in stock (-10)
Purchase of Machinery 100

3. Calculate Operating Surplus from the following data:

Rent 120
Profit 200
Domestic income 800
Mixed income 70
Wages and Salaries 350
Indirect Tax 150

4. Calculate GDPMP and NDPMP with the help of expenditure method from the data give below:

Personal disposable income 8600

Personal Savings 1500
Fixed capital formation 3000
Net exports (-)300
Net Factor income from abroad (-)500
Net indirect taxes 600
Government expenditures 2200
Change in stock 800
Consumption of fixed Capital 450

5. From the following data calculate National Income:

Compensation of employees 800

Rent 200
Wages and Salaries 750
Net exports (-) 30
Net factor income from abroad (-)20
Profit 300
Interest 100
Remittances from abroad 80
Taxes on profits 60

6. Find out Factor Income from Net Domestic Product accruing to the Private Sector from the
following data:

Operating Surplus 30
Income from property and entrepreneurship 5
accruing to government departments
Compensation of employees 100
Mixed income of the self employed 180
Saving of non-departmental enterprises 5

7. From the following data, calculate: Personal Disposable Income

Private income 3000

Net retained earnings of private enterprises 600
Corporation tax 350
Direct taxes paid by households 300

8. From the following data, calculate: National Income

Compensation of employees 800

Rent 350
Profit 600
Interest 450
Mixed income of self-employed 900
Net Factor income from abroad (-)50

9. Calculate National Income and Net National Disposable Income from the following data:

Net current transfers to abroad 15

Net Exports (-)20
Private final consumption expenditure 400
Net factor income to abroad 10
Government final consumption expenditure 100
Indirect tax 30
Net domestic capital formation 50
Subsidy 5

10. From the following data, calculate National Income by (a) income method, and (b)
expenditure method:

Private final consumption expenditure 2000

Net capital formation 400
Change in stock 50
Compensation of employees 1900
Rent 200
Interest 150
Operating surplus 720
Net indirect tax 400
Employers contribution to social security 100
schemes
Net exports 20
Net factor income from abroad (-)20
Government final consumption expenditure 600
Consumption of fixed capital 100