BEC 20225: Macroeconomics

Week 3: Part II of National Income Accounting System

Tutorial Questions – Week 3: Income Approach
1. Following details are available for SL economy (In billions)

Salaries and wages 400

Private income tax 310
Net income of farmers 27
Interest income 38
Transfer payments by government 240
Corporate tax 40
Undistributed corporate profits 15
Net income earned from self-employment 60
Depreciation 60
Net foreign factor income -20

Calculate the followings,

(a) Net National Income at factor cost price method

(b) Disposable household income

2. Following details are available for SL economy (In billions)

Value addition of agricultural sector 8,000

Undistributed profits 1,800
Value addition of the service sector 25,000
Foreign factor payment 13,000
Value addition of industrial sector 12,000
Income from employment 19,000
Net indirect taxes 3,000
Income from self-employment 6,400
Rent 6,000
Corporate tax 2,000
Dividends 4,000
Capital depreciation 2,800
Foreign factor income 8,000

Required,

Calculate the gross national product at market price based on output and income
approaches.