Practical Questions on National Income

1. Compute National income

Consumption 750
Investment 250
Government Purchases 100
Exports 100
Imports 200

2. Calculate Gross Domestic Product at market Prices (GDPMP) and derive

national income from the following data (in Crores of `)

Inventory Investment 100

Exports 200
Indirect taxes 100
Net factor income from abroad - 50
Personal consumption expenditure 3500
Gross residential construction investment 300
Depreciation 50
Imports 100
Government purchases of goods and services 1000
Gross public investment 200
Gross business fixed investment 300
3. Find GDPMP and GNPMP from the following data (in Crores of ` ) using income
method. Show that it is the same as that obtained by expenditure method.

Personal Consumption 7,314

Depreciation 800
Wages 6,508
Indirect Business Taxes 1,000
Interest 1,060
Domestic Investment 1,442
Government Expenditures 2,196
Rental Income 34
Corporate Profits 682
Exports 1,346
 Net Factor Income from Abroad 40
Mixed Income 806
Imports 1,408

4. From, the following data calculate the Gross National Product at Market
Price using Value Added method

(` in Crores)
Value of output in primary sector 500
Net factor income from abroad -20
Value of output in tertiary sector 700
Intermediate consumption in secondary sector 400
Value of output in secondary sector 900
Government Transfer Payments 600
Intermediate consumption in tertiary sector 300
Intermediate consumption in primary sector 250

5. Calculate ‘Sales’ from the following data :

Particulars ` in Lakhs
Subsidies 200
Opening stock 100
Closing stock 600
Intermediate consumption 3,000
Consumption of fixed capital 700
Profit 750
Net value added at factor cost 2,000
6. Given the following data, determine the National Income of a country
using expenditure method and income method:

Particulars ` in Crores
Private Final Consumption Expenditure 1000
Government Final Consumption Expenditure 550
Compensation of Employees 600
Net Exports -15
 Net Indirect Taxes 60
Net Domestic Fixed Investment 385
Consumption of Fixed Capital Formation 65
Net Factor Income from Abroad -10
Interest 310
Rent 200
Mixed Income of Self-Employed 350
Profit 400

7. Calculate NNPFC. By expenditure method with the help of following information-

Items ` in Crores
Private final consumption expenditure 10
Net Import 20
Public final consumption expenditure 05
Gross domestic fixed capital formation 350
Depreciation 30
Subsidy 100
Income paid to abroad 20
Change in stock 30
Net acquisition of valuables 10

8. From the following data calculate (a) Gross Domestic Product at Factor Cost, and
(b) Gross Domestic Product at Market price

Items ` in Crores
Gross national product at factor cost 61,500
Net exports (-) 50
Compensation of employees 3000
Rent 800
Interest 900
Profit 1,300
 Net indirect taxes 300
Net domestic capital formation 800
Gross domestic capital formation 900
Factor income to abroad 80

9. Calculate NI with the help of Expenditure method and income method with thehelp of
following data:
Items ` in Crores
Compensation of employees 1,200
Net factor income from Abroad 20

Net indirect taxes 120

Profit 800
Private final consumption expenditure 2,000
Net domestic capital formation 770
Consumption of fixed capital 130
Rent 400
Interest 620
Mixed income of self-employed 700
Net export 30
Govt. final consumption expenditure 1100
Operating surplus 1820
Employer’s contribution to social security scheme 300
[Link] Net Value Added by Factor Cost from the following data
Items ` in Crores
Purchase of materials 85
Sales 450
Depreciation 30
Opening stock 40
Closing stock 30
Excise tax 45
Intermediate consumption 200
Subsidies 15

[Link] national income by value added method.

Particulars (` in crores)
Value of output in primary sector 2000
Intermediate consumption of primary sector 200
Value of output of secondary sector 2800
Intermediate consumption of secondary sector 800
Value of output of tertiary sector 1600
Intermediate consumption of tertiary sector 600
Net factor income from abroad -30
Net indirect taxes 300
Depreciation 470
[Link] the Operating Surplus with the help of following data-
Particulars ` in Crores
Sales 4000
Compensation of employees 800
Intermediate consumption 600
Rent 400
Interest 300
Net indirect tax 500
Consumption of Fixed Capital 200
Mixed Income 400

[Link] National Income by Value Added Method with the help of following
data-
Particulars ` (in Crores)
Sales 700
Opening stock 500
Intermediate Consumption 350
Closing Stock 400
Net Factor Income from Abroad 30
Depreciation 150
Excise Tax 110
Subsidies 50

[Link] basis of following information, calculate NNP at market price and

Disposablepersonal income
Items ` in Crores
NDP at factor cost 14900
Income from domestic product accruing to government 150
Interest on National debt 170
Transfer payment by government 60
Net private donation from abroad 30
Net factor income from abroad 80
Indirect taxes 335
Direct taxes 100
Subsidies 262
Taxes on corporate profits 222
Undistributed profits of corporations 105

15. Calculate the aggregate value of depreciation when the GDP at market price of a
country in a particular year was ` 1,100 Crores. Net Factor Income from Abroad
was ` 100 Crores. The value of Indirect taxes – Subsidies was ` 150 Crores and National
Income was ` 850 Crores.

[Link] the following data, estimate National Income and Personal Income.
Items ` . in Crores
Net national product at market price 1,891
Income from property and entrepreneurship accruing
to government administrative departments 45
Indirect taxes 175
Subsidies 30
Saving of non-departmental enterprises 10
Interest on National debt 15
Current transfers from government 35
Current transfers from rest of the world 20
Saving of private corporate sector 25
Corporate profit tax 25

[Link] the following data, calculate NNPFC, NNPMP, GNPMP and GDPMP.
Items ` in Crores
Operating surplus 2000
Mixed income of self-employed 1100
Rent 550
Profit 800
Net indirect tax 450
Consumption of fixed capital 400
Net factor income from abroad -50
Compensation of employees 1000