Help me to do this question!
Calculate gross national product at factor cost from the following data by (a) income method and (b) expenditure method.
(CBSE, Delhi 2002)
Particulars | ₹in crores |
(i) Wages and salaries | 800 |
(ii) Mixed income of self-employed | 160 |
(iii) Operating surplus | 600 |
(iv) Undistributed profits | 150 |
(v) Gross capital formation | 330 |
(vi) Change in stocks | 25 |
(vii) Net capital formation | 300 |
(viii) Employers' contribution to social security schemes | 100 |
(ix) Net factor income from abroad | (–) 20 |
(x) Exports | 30 |
(xi) Imports | 60 |
(xii) Private final consumption expenditure | 1,000 |
(xiii) Government final consumption expenditure | 450 |
(xiv) Net indirect taxes | 60 |
(xv) Compensation of employees paid by the Government | 75 |
Note: Consumption of Fixed Capital is calculated as the difference between (v) and (vii) item.
Gross National Product at Factor Cost = 1,670 cr
Dear student,
(1) GROSS NATIONAL PRODUCT AT FACTOR COST BY INCOME METHOD
(all figures are in crores)
NET DOMESTIC DOMESTIC PRODUCT AT FACTOR COST(NDP FC) = COMPENSATION OF EMPLOYEES *+ OPERATING SURPLUS + MIXED INCOME OF SELF EMPLOYED
NDPFC= 900 + 600 +160 = 1660
Compensation of employees = Wages & salaries (800) + Employers contribution to social security schemes (100)
= 900
GROSS NATIONAL PRODUCT AT FACTOR COST = NET DOMESTIC PRODUCT AT FACTOR COST + Depreciation + Net factor income from abroad
GROSS NATIONAL PRODUCT AT FACTOR COST = 1660 +30+ (-20)
= 1670
(2) GROSS NATIONAL PRODUCT AT FACTOR COST BY EXPENDITURE METHOD
GROSS DOMESTIC PRODUCT AT MARKET PRICE = Private final consumption expenditure + government final consumption expenditure + Gross capital formation + Net exports(exports- imports)
GROSS DOMESTIC PRODUCT AT MARKET PRICE = 1000+450+330-30 =1750
GNP AT FACTOR COST = GDP AT MARKET PRICE - Net indirect taxes + Net factor income from abroad
= 1750 - 60 -20 = 1670
Regards
(1) GROSS NATIONAL PRODUCT AT FACTOR COST BY INCOME METHOD
(all figures are in crores)
NET DOMESTIC DOMESTIC PRODUCT AT FACTOR COST(NDP FC) = COMPENSATION OF EMPLOYEES *+ OPERATING SURPLUS + MIXED INCOME OF SELF EMPLOYED
NDPFC= 900 + 600 +160 = 1660
Compensation of employees = Wages & salaries (800) + Employers contribution to social security schemes (100)
= 900
GROSS NATIONAL PRODUCT AT FACTOR COST = NET DOMESTIC PRODUCT AT FACTOR COST + Depreciation + Net factor income from abroad
GROSS NATIONAL PRODUCT AT FACTOR COST = 1660 +30+ (-20)
= 1670
(2) GROSS NATIONAL PRODUCT AT FACTOR COST BY EXPENDITURE METHOD
GROSS DOMESTIC PRODUCT AT MARKET PRICE = Private final consumption expenditure + government final consumption expenditure + Gross capital formation + Net exports(exports- imports)
GROSS DOMESTIC PRODUCT AT MARKET PRICE = 1000+450+330-30 =1750
GNP AT FACTOR COST = GDP AT MARKET PRICE - Net indirect taxes + Net factor income from abroad
= 1750 - 60 -20 = 1670
Regards