0% found this document useful (0 votes)
363 views26 pagesNational Income
Uploaded by
Shreya GargCopyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
0% found this document useful (0 votes)
363 views26 pagesNational Income
Uploaded by
Shreya GargCopyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
Praeticals on Value Added Method
1. Inan economy, following transactions took place. Calculate value of output and value added by Firm B
(i) Firm soldto firm B goods of 780 crore; to firm C750 crore; to household 30 crore and goods
of value 10 crore remains unsold
(i) Firm B sold to firm C goods of € 70 crore; to firm D 40 crore; goods of value Z 30 crore were
exported and goods of value 5 crore was sold to goverment. (CBSE, Sample Paper 2019}
‘Value of Output of firm B = 145 crores; Value added by firm B = 765 crores
2. Caleulate Value addled by firm A and
Sales by firm A
(i) Purchases from firm B by firm A 40
(ii) Purchases trom firm A by fim B 60
(iv) Sales by firm B 200
(¥)_ Closing stock of firm A 20
(vi) Closing stock of firm B 35
(ii) Opening stock of firm A 25
(vill) Opening stock of firm B 45
(ix)_Ingirect taxes paid by both the firms 30
Value added by firm A = 7 55 crores; Value added by fim B= 180 crores
3. Calculate net value added at factor cost from following data:
Particulars Tin crores
() Purchase of machinery to be used in the production unit 100
(i) Sales 200
(ii) Intermediate cosis 90
(i). Indirecttaxes 12
(¥) Change in stock 10
(vi) Goods and Services Tax 6
(ii) Stock of raw material 5
‘Net value added at factor cost = £108 Crores 4. Calculate NDP--.
Particulars
() Subsidies 1
(i) Sales 100
(ii) Closing stock 10
(iv) Indirect taxes 5
(v) Intermediate consumption 30
(vl) Opening stock 20
(vil) Consumption of fixed capital 15
NDFizg = ®41 crores
5. Calculate ‘value of output! from the following data:
Particulars Zin lakhs
() Subsidy 10
(i) Intermediate consumption 150
(ii) Net addition to stocks (13
(iv) Depreciation 30
(v) Goods and Services Tax 20
(vil) Net value added at factor cost 250
Value of output = 2440 lakhs
6. Calculate value of output and gross value added at market price
Particulars Zin crores
(i) Opening stock 1,000
(i) Closing stock 300
(ii) Purchase of raw materials 200
(iv) Sales 10,000
(¥) Indirect taxes 250
(vil) Subsidies 50
Value of output =79,800 crores; Gross value added af MP = % 9,600 crores 7. Calculate ‘Sales’ from the following data:
{CBSE, Foreign 2008 (il)}
Particulars Zin lakhs
(i) Net value added at factor cost 300
(ii) Net addition to stocks (4120
(ii) Goods and Services Tax (GST) 30
(iv) Depreciation 10
(¥) Intermediate consumption 100
(vi) Subsidy 5
“Sales Tax given in the question earlier has been replaced by GST.
Sales = 7455 lakhs Ta. Calculate “Intermediate Consumption’ from the following data: {CBSE, Delhi Compt. 2019}
Particulars Zin crores
(i) Gross value of output 300
(i) Net value added of factor cost (NVA-o) 100
(il) Subsidies 15
(iv) Depreciation 30
Intermediate Consumption = = 185 Crores:
7b. Calculate Net Value Added at Factor Cost (NVAr¢) from the following data: {CBSE, 2020 (58/4/1)}
Particulars Zin crores
(i) Value of Output 800
(il) Intermediate Consuny 200
(iil) Indirect Taxes 30
(iv) Depreciation 20
(v) Subsidies 50
(vi) Purchase of Machinery 50
{Net Value Added at Factor Cost = 7600 Crores} 8. Calculate Net Value Added at Factor Cost: {CBSE, Delhi 2012 (I)}
Particulars
(i) Consumption of fixed capital () 600
(i) Goods and Services Tax or GST* (2) 400
(ii) Output sold (units) 2,000
(iv) Price per unit of output (2) 10
(v) Net change in stocks (2) (50
(vi) Intermediate cost %) 10,000
(vil) Subsidy (2) 500
9. Calculate Net Value Added at Market Price:
“Import duty given in the question earlier has been replaced by GST.
79,450
{CBSE, Delhi 2012 (i)}
Particulars
(i) Output sold (units)
i) Price per unit of output (2)
(ii) Goods and Services Tax or GST 2)
(iv) Net change in stocks (2)
(¥) Depreciation (@)
(vi)_ Intermediate cost (2)
800
20
2,000
(91500
1,000
8,000
“Excise duty and Import duty given in the question earlier have been replaced by GST.
6,500 10. Find Net Value added at Market Price:
{CBSE, Defhi 2016 (I))}
Particulars (in lakhs)
() Fixed Capital good with a life span of 5 years 15
(i) Raw materials 6
(ii) Sales 25
(iv) Net change in stock 2
(v) Taxes on production 1
14 lakh
41. Calculate ‘Sales’ from the following data: {CBSE, All India 2013}
Particulars (in lakhs)
(i) Subsidies 200
(i) Opening stock 400
(iii) Closing stock 600
iv) Intermediate consumption 3,000
(v) Consumption of fixed capital 700
(vi) Profit
(vii)_Net value added at factor cost
25,000 lakh
12. Suppose firm A sold timber produced in its forest to firm B for 7 1,000 and firewood to consumers
for fuel for 7500. Firm B converted logs into slippers and partly sold to furniture making firm C for
7800 and the remaining to private consumers for 7700. Firm C sold furniture worth < 1,000 to private
consumers and the remaining to a government office for 7500. Calculate:
(i) Values added by firm A, firm B and firm C.
(ji) Total value of output.
() Value added by firm A =® 1,500; Value acied by firm B= © 600; Value added by firm
(i Total value of output = 24,500.
2700. 13. You are given following information about four producers A, B, C and D in an economy A sells 7300
worth of his output to B, 7 200 worth of his output to Cand % 500 worth of output to households. The
sales of Bto A, C and D are worth @ 400, 7 200 and 7300 respectively. C sells to.A, B and D output
worth @ 100 each. Sales by C to households are worth 7 900. D sells to households output worth
7700. His exports are worth 300 while stock worth & 200 remains unsold with D. Estimate the value
added by.
(i) A.B, CandD separately.
(i) Allof them together.
(@) Value added: Firm A = % 500; Firm B = 2500; Firm € = 2800; Firm D = % 800. (ii) 22,600.
14, Suppose firm A sold raw material to firm B for & 1,000 and to firm C for £600. Firm B sold its product
partly to private consumers for 7 800 and the remaining product was exported for = 600. Firm C part
of its product to the government for 500 for public consumption and the remaining product worth
7500was unsold stock left witht. (Assume that firm A buys no raw material). (i) Find the value added
by firm A, firm B and firm C. (i) Total Consumption Expenditure.
@) Value addled: Firm A = € 1,600;Firm B = % 400; Fin G= 2400.
() Total Consumption Expenciture = % 1,300. 15. In an economy, the following transactions take place and the final sale is for private consumption. A,
B,C and D are four industries. A sells to B for = 20,000. B whose value added is 740,000, sells half of
its output to C and another haff to D.C sells all its output to D, whose value added is €30,000.D sells
all its output to final product for @ 1,30,000. What is value added by C?
Value Added by C = 740,000
Practicals on Income Method
16. Calculate National Income_
Particulars Zin crores
(i) Mixed income of self employed 200
(i) Old age pension 20
(ii) Dividends 100
(iv) Operating surplus 900
(v) Wages and salaries 500
(vi) Profits 400
(vil) Employers’ contribution to social security schemes 50
(vil) Net factor income from abroad 10
(x) Consumption of fixed capital 50
(X)_ Net indirect taxes 17. Calculate NNP at FC.
Particulars Zin crores
(Net current transters from rest of the world 80
(i) Wages and Salaries 600
(ii) Netingirecttaxes 75
(iv) Net Factor income from abroad -20
(W) Rent and interest 160
(vl) Corporation tax 40
(vil) Mixed Income of the self-employed 280
(vil) Undistributed profit 60
(ie) Dividend 20
(%)_ Consumption of fixed capital 120
INP pc = 7,140 crores
18. Calculate GNP at MP.
Particulars in crores
() Employee Compensation 600
(i) Rent and interest 350
(ii) Profit 200
(iv) Indirect Tax 160
(¥) Consumption of fixed capital 200 (vi) Mixed Income of the self-employed 850
(vil) Subsidies 40
(vii) Net current transfers from rest of the world 850
(x) Net Factor income from abroad (00
(GNP at MP = 72,220 crores
19. Calculate GNP at MP.
Particulars Pin crores
(i) Indirect tax 200
(i) Consumption of fixed capital 100
(ii) Factor Income to abroad 250
(iv) Factor Income from abroad 320
(vy) Rent 250
(vi) Dividend 220
(vil) Mixed Income 120
(vil) Saving of private corporate sector 200
(&) Interest 100
(x) Subsidies 200
(x) Compensation of employees 500
(il) Corporate tax 400
(GNP ai MP = 1,960 crores 20. Calculate “Gross National Product at Market Price” from the following data:
{CBSE, All India 2013}
Particulars Zin crores:
() Compensation of employees 2,000
(i) Interest 500
(ii) Rent 700
(iv) Profits 800
(v) Employers’ contribution to social security schemes 201
(vi) Dividends 300
(vil) Consumption of fixed capital 100
(vil) Net indirect taxes 250
(i) Netexports 70
(x) Net factor income to abroad 150
(x) Mixed income of self-employed 1,500
85,700 Crore
21. From the data given below, prove that'Net Value Added at Factor Cost is equal to ‘Income Generated’
Particulars Zin crores
()) Opening stock 200
(il) Closing stock 400 Purchase of raw materials
Sales
i)
(vy)
(v) Corporate tax
(vi) Undistributed profits
wi)
(vill)
(9)
(x) Depreciation
(x) Indirect taxes
(xii) Subsidies
(xii) Wages and salaries
Dividends
Rent
Interest
300
1,200
100
50
50
150
100
200
150
50
350
22. Oni
Net Value Added at Factor Cost = Income Generated = % 800 crores
(xi)
the basis of following data, prove that‘Net Value Added at Factor Cost is equal to'Income Generated’.
Particulars @in crores
() Adgition to stock 1,000
(il) Sales 10,000
(ii) Netingirect taxes 800
(iv) Purchase of raw material 1,850
(v) Expenses on Power 850
(vl) Consumption of fixed capital 500
(vil), Rent 700
(vii) Compensation of Employees 3,500
(%) Interest 1,000
(x) Dividend 1,500
(x) Corporate gains tax 300
Undistributed profit 200
Net Value Added at Factor Cost = income Generated = 7 7,200 crores Practicals on Operating Surplus
23. Calculate operating surplus
i) Bonus toemployees
(ii) Mixed income 175
(ii) Profit 100
(iv) Dividend 40
(v) Corporate tax 20
EY)
(vi) Rent 24, Cal
(ui) Royalty
(vii) Interest
(x)_ Employers’ contribution to social security schemes
130
30
(Operating Surplus = 350 crores
(vii) Mixed income
Iculate the value of operating surplus.
Particulars @in crores
(i) Value of output 800
(i) Intermediate consumption 200
(ii) Compensation of employees 200
(iv) Indirect taxes 20
(v) Depreciation 20
(vl) Subsidies 50
100
25. Calculate the operating surplus.
Operating Surplus = 7300 crores
Particulars
Zin crores
(i) Compensation of employees
(i) Indirect taxes
(iii) Consumption of fixed capital
(iv) Subsidies
(v)_ Gross domestic product at MP 26. Calculate operating surplus and compensation of employees.
Particulars Zin crores
(i) Indirect taxes 250
(ii) Depreciation 200
(ii) Royalty 20
(wv) Profit 200
(v) Subsi 50
(vi) Gross domestic product at MP 1,800
(vil) Interest 50
(vil), Rent 100
(e)_Net factor income from abroad 40
(Operating Surplus = 2370 crores; Compensation of employees = % 1,030 crores
Practicals on Expenditure Method
27. Calculate GNP at MP_
Particulars in crores
(i) Personal consumption expenditure 27,500
(i) Government consumption expenditure 3,000 (ii) Gross domestic fixed capital formation 2.500
(iv) Import of goods and services 500
(v) Net factor income from abroad = 250
(vi) Subsidy 250
(vii) Fallin stock 300
(vill) Export of goods and services 450
(i) Depreciation 1,000
()_Netindirect taxes 1,000
GNP at MP = 732,400 crores
28. Calculate NDP at FC.
Particulars in crores
(i) Private final consumption expenditure 400
(i) Gross domestic capital formation 100
(iii) Change in stocks 20
iv) Net indirect taxes 60
(W)_ Net factor income from abroad 10
(vl) Net exports (20
(vil) Consumption of fixed capital
(vil) Government final consumption expenditure 29. Cal
(iv) Net indirect taxes 60
(v) Net factor income from abroad 10
(vl) Net exports (20
(vil) Consumption of fixed capital 20
(vill) Government final consumption expenditure 100
NOP at FC = 2500 crores
Iculate National Income.
Particulars Zin crores
(Private Final Consumption Expenditure 2,000
(i) Government Final Consumption Expenditure 700
(ii) Gross domestic Capital formation 200
(iv) Net Exports 300
(¥) Net Factor income from abroad 400
(vi) Consumption of fixed capital 200
(vil)_ Net indirect tax 50
National Income = 73,350 crores:
30. Calculate National Income from the following data: {CBSE, Delhi 2013}
Particulars Zin crores
(Private final consumption expenditure 200
(i) Profit 100
(ii) Government final consumption expenditure 400
(iv) Net indirect taxes 100
(¥) Gross domestic capital formation 250
(vl) Change in stock 50 (vii) Net factor income from abroad 40
(vil) Consumption of fixed capital
(i) Netimports
7,360 Crore
Miscellaneous Practicals
31. Calculate National Income by Income and Expenditure method.
Particulars Zin crores
()) Compensation of employees 1,200
(il) Nettactor income from abroad (920
(ii) Net indirect tax 120
(iv). Profits 800
(¥) Private final consumption expenditure 2,000
(vl) Net domestic capital formation 770
(vil) Consumption of fixed capital 130
(wil) Rent 400
(ix) Interest 620
(x) Mixed income of self employed 700
(xi) Net exports ()30
(
