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Assignmen1 EC
Assignmen1 EC
Assignmen1 EC
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To calculate the Net Domestic Product at Factor Cost (NDPFC) by the expenditure
method and National Income by the value-added method, we'll follow these steps:
Net Indirect Taxes = Indirect Taxes - Subsidies Net Indirect Taxes = 100 cr. - 10 cr.
Net Indirect Taxes = 90 cr.
NDPFC = NDPMP - Net Indirect Taxes NDPFC = 1220 cr. - 90 cr. NDPFC = 1130 cr.
For the Primary Sector: Value Added in Primary Sector = Value of Output (Primary
Sector) - Value of Intermediate Consumption (Primary Sector) Value Added in
Primary Sector = 900 cr. - 400 cr. Value Added in Primary Sector = 500 cr.
For the Secondary Sector: Value Added in Secondary Sector = Value of Output
(Secondary Sector) - Value of Intermediate Consumption (Secondary Sector) Value
Added in Secondary Sector = 800 cr. - 300 cr. Value Added in Secondary Sector =
500 cr.
For the Tertiary Sector: Value Added in Tertiary Sector = Value of Output (Tertiary
Sector) - Value of Intermediate Consumption (Tertiary Sector) Value Added in
Tertiary Sector = 400 cr. - 100 cr. Value Added in Tertiary Sector = 300 cr.
Now, calculate National Income by adding the value-added in all sectors and adding
net factor income from abroad:
So, the Net Domestic Product at Factor Cost (NDPFC) by the expenditure method is
1130 cr., and the National Income by the value-added method is 1320 cr.