N ATIONAL INCOME

Q.1 Calculate Net National Income at Market Price from the following data by income and expenditure method; (1090)
Particulars Rs. In crores
A Personal consumption expenditure 700
B Wages and salaries 700
C Employers contribution to social security schemes 100
D Gross business fixed investment 60
E Gross residential construction investment 60
F Gross public investment 40
G Inventory investment 20
H Profits 100
I Government purchases of goods and services 220
J Rent 50
K Exports 40
L Imports 20
M Interest 40
N Mixed income of self-employed 100
O Factor income to abroad 20
P Consumption of fixed capital 20
Q Subsidies 10
R Factor income from abroad 10
S Indirect taxes 20
Q.2 Calculate Net National Income at factor cost from the following data by income and expenditure method; (1150)
Particulars Rs. In crores
a Mixed income of self-employed 100
b Gross business fixed investment 200
c Inventory investment 40
d Gross public invesment 100
e Gross residential construction investment 10
f Personal consumption expenditure 900
g Net exports (-)50
h Subsidies 50
i Government purchases of goods and services 150
j Interest, rent and profits 600
k Indirect taxes 250
l Employee compensation 400
m Consumption of fixed capital 50
n Employers contribution to social security 50
o Net factor income from abroad 50
Q.3 How are the following treated in estimation of National Income? Give reasons in support of your answer:
a. Expenditure on purchase of an old house. Not included
b. Interest paid by consumer households. Not included
c. Purchase of new shares of a domestic firm. Not included 3
Q.4 From the following data calculate value added by firm X (165) and Y (175): 3
S.No. Particulars Rs. In lakhs.
i Closing stock of firm X 20
ii Closing stock of firm Y 15
iii Opening stock of firm Y 10
iv Opening stock of firm X 5
v Sales by firm X 300
vi Purchases by firm X from firm Y 100
vii Purchases by Firm Y from firm X 80
viii Sales by firm Y 250
ix Import of raw materials by firm X 50
x Exports by firm Y 30

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Q.5 How will you treat the following in estimation of national income? Give reasons in support of your answer.
a. Profits earned by foreign banks in India. Not included (Deducted)
b. Increase in the prices of the share of a company. Not included
c. Government expenditure on street lighting. Included
d. Interest on public debt. Not included
e. Free meals given to employees. Included
f. Purchase of a new car by a household. Included 6
Q.6 Calculate (a) Gross Domestic Product at market price by income method(740) and (b) National income by expenditure method:
(615)
S. No. Particulars Rs. In crores
I Mixed income of self employed 280
ii Gross business fixed investment 60
iii Compensation of employees 240
iv Net factor income from abroad (-)5
v Imports 60
vi Exports 50
vii Governments final consumption expenditure 75
viii Indirect taxes 90
ix Gross public investment 20
x Inventory investment 35
xi Private final consumption expenditure 510
xii Consumption of fixed capital 40
xiii Gross residential construction investment 50
xiv Subsidies 10
xv Rent, interest and profits 100
xvi Interest on national debts 10
Q.7 Calculate National Income by Expenditure method (1230) and Gross National Product at Market Price by income method
(1340), from the following data: 6
Particulars Rs. In crores
I Household final consumption expenditure in domestic market 1000
Ii Net domestic capital formation 140
iii Wages and salaries 500
iv Government final consumption expenditure 100
V Rent and interest 400
vi Dearness allowance 30
vii Factor income received from abroad 20
viii Direct purchases of goods and services by residents abroad 50
ix Net changes in stocks 50
X Undistributed profits 100
xi Subsidies 20
xii Net exports (-)20
xiii Consumption of fixed capital 60
xiv Factor income paid to abroad 10
xv Corporation tax 50
xvi Indirect taxes 70
xvii Dividends 150
xviii Employers contribution to social security 20
Q.8 How are the following treated in estimation of National Income? Give reasons in support of your answer:
a. Expenditure on purchase of an old home. Not included
b. Farm produce for self-consumption. Included
c. Payment of bonus to school employees. Included
d. Purchase of new shares of a domestic firm. Not included 4
Q.9 Calculate Net National Income at Market Price from the following data by income and expenditure method; (1990)
S.No. Particulars Rs. In crores
I Purchase of consumer goods and services in the domestic market by 1000
resident households

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 Ii Direct purchases from abroad by households 110
Iii Government final consumption expenditure 600
Iv Mixed income of self-employed 600
V Factor income to abroad 40
Vi Net capital formation 300
Vii Factor income from abroad 30
Viii Consumption of fixed capital 25
Ix Change in stocks 50
X Compensation of employees 900
Xi Operating surplus 400
Xii Net Indirect taxes 100
Xiii Net exports (-)10
Xiv Employers contribution to social security schemes 70
xv Old age pensions 30
Q.10 Calculate National income by a. income method b. expenditure method from the following data.(1340)
S.No. Particulars Rs. In crores
I Personal consumption expenditure 800
Ii Government purchases of goods and services 300
iii Gross business fixed investment 225
iv Gross residential construction investment 50
V Inventory investment 30
vi Gross public investment 20
vii Consumption of fixed capital 25
viii Net exports (-) 10
ix Net factor income from abroad (-) 15
X Profits 300
xi Rent 140
xii Interest 200
xiii Employers contribution to social security 60
xiv Net indirect taxes 35
xv Mixed income of self employed 215
xvi Employee compensation 500
Q.11 Are the following included in Gross National Product? Give reasons in support of your answer.
a. Sale of bonds and shares. Not included
b. Rent received by State Bank of India on the building rented to a foreign embassy in India. Included
c. Interest paid by households to commercial bank. Not included
d. Increase in the prices of stocks lying with the traders. Not included
e. Old age pensions. Not included
f. Construction of residential buildings. Included 6
Q.12 Calculate Gross National Product at Market Price by income method (40,400) and National income by expenditure method
(34,700) from the following data: 6
S.No. Particulars Rs. In Crores
i Compensation of employees 13,300
ii Government final consumption expenditure 3,800
iii Indirect taxes 3,800
iv Gross Business fixed investment 6000
v Gross residential construction investment 300
vi Mixed income of the self-employed 16,100
vii Rent, interest, profits 5000
viii Inventory investment 500
ix Gross public investment 500
x Exports of goods and services 1,700
xi Imports of goods and services 1,700
xii Private final consumption expenditure 29,000
xiii Net factor income from abroad 300

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 xiv Subsidies 300
xv Consumption of fixed capital 2,200
xvi Factor income to rest of the world 500
Q.13 Calculate Net National Income at Market Price from the following data by income and expenditure method; (1090)
Particulars Rs. In crores
A Personal consumption expenditure 700
B Wages and salaries 700
C Employers contribution to social security schemes 100
D Gross business fixed investment 60
E Gross residential construction investment 60
F Gross public investment 40
G Inventory investment 20
H Profits 100
I Government purchases of goods and services 220
J Rent 50
K Exports 40
L Imports 20
M Interest 40
N Mixed income of self-employed 100
O Factor income to abroad 20
P Consumption of fixed capital 20
Q Subsidies 10
R Factor income from abroad 10
S Indirect taxes 20
Q.14 Calculate national income by income and output method from the following data; (460)
S.no. Particulars Rs. Crores
i Value of output of primary sector 1,000
ii Value of output of other sectors 400
iii Raw material purchased by the primary sector 500
iv Raw material purchased by other sectors 300
v Consumption of fixed capital 55
vi Factor income received from rest of the world 10
vii Mixed income of self -employed 200
viii Indirect taxes 100
ix Compensation of employees 170
x Rent 40
xi Employers contribution to social security schemes 20
xii Dividend 10
xiii Subsidies 20
xiv Corporation tax 10
xv National debt interest 5
xvi Undistributed profits 5
xvii Factor income paid to rest of the world 15

xviii Interest 30

Q.15 Calculate sales from the following data: (600)

S.no. Particulars Rs lakhs
i Net value added at factor cost 300
ii Purchase of machinery 100
iii Indirect taxes 20
iv Purchase of raw material 200
v Import of raw material 30
vi Consumption of fixed capital 30
vii Change in stocks (-) 50

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