Calculate National Income by Income Method and Production Method Value of output of primary sector ₹ 300
Calculate National Income by Income Method and Production Method.
| Particulars | ₹ in crores |
| (i) Value of output of primary sector | 300 |
| (ii) Value of output of Secondary Sector | 200 |
| (iii) Value of output of tertiary Sector | 100 |
| (iv) Intermediate consumption of primary sector | 100 |
| (v) Intermediate consumption of secondary sector | 50 |
| (vi) Intermediate consumption of tertiary sector | 50 |
| (vii) Emoluments of employees | 150 |
| (viii) Net factor income from abroad | – 10 |
| (ix) Operating Surplus | 140 |
| (x) Consumption of fixed capital | 40 |
| (xi) Net indirect tax | 20 |
| (xii) Interest | 20 |
| (xiii) Mixed Income | 50 |
| (xiv) Rent | 10 |
Ans:- National Income = ₹ 330 Crores
Anurag Pathak Changed status to publish December 21, 2023
Solution:-
Calculation of National Income by Income Method
NDP at FC = Emoluments of Employees + Mixed Income + Operating Surplus
NDP at FC = ₹ 150 + ₹ 50 + ₹ 140
NDP at FC = ₹ 340
NNP at FC = NDP at FC + Net Factor Income from abroad
NNP at FC = ₹ 340 + ₹ (-) 10
NNP at FC = ₹ 330 Crores
Calculation of National Income by Production Method
Value of Output = Value of output of primary sector + Value of output of secondary sector + Value of output of tertiary sector
Value of Output = ₹ 300 + ₹ 200 + ₹ 100
Value of Output = ₹ 600
Intermediate Consumption = Intermediate Consumption of Primary Sector + Intermediate Consumption of Secondary Sector + Intermediate Consumption of tertiary Sector
Intermediate Consumption = ₹ 100 + ₹ 50 + ₹ 50
Intermediate Consumption = ₹ 200
GDP at MP = Value of Output – Intermediate Consumption
GDP at MP = ₹ 600 – ₹ 200
GDP at MP = ₹ 400
NNP at FC = GDP at MP – Consumption of fixed capital + Net Factor income from abroad – Net indirect tax
NNP at FC = ₹ 400 – ₹ 40 + ₹ (-) 10 – ₹ 20
NNP at FC = ₹ 330 Crores
Anurag Pathak Changed status to publish November 7, 2023
