Worksheet 8 (Problems based on income and expenditure method)
Objective: To identify that you are clear with the concept of calculation of factor income/Domestic
Income/National income by Expenditure method.
1
2
3
4
Calculate GDPMP
Particulars
(i)
Private final consumption expenditure
(ii)
Government final consumption expenditure
(iii) Gross fixed capital formation
(iv) Increase in stock
(v)
Exports
(vi) Imports
(vii) Capital consumption allowances
(viii) Net indirect taxes
₹ in crores
15,000
11,500
1000
200
500
700
650
500
Calculate National income:
Particulars
(i)
Opening stock
(ii)
Closing stock
(iii) Consumption of fixed capital
(iv) Private final consumption expenditure
(v)
Net exports
(vi) Net factor income from abroad
(vii) Compensation of employees
(viii) Direct purchases of non-durable goods from abroad by general government
(ix) Net purchases of goods and services by general government in domestic market
(x)
Net capital formation
(xi) Net indirect taxes
Calculate National income:
Particulars
(i)
Private final consumption expenditure in domestic market
(ii)
Government final consumption expenditure
(iii) Consumption of fixed capital
(iv) Net exports
(v)
Net factor income from abroad
(vi) Gross fixed capital formation
(vii) Change in stock
(viii) Direct purchases from abroad by resident household
(ix) Direct purchases by non-resident in domestic market
(x)
Net indirect taxes
Calculate NNPMP
Particulars
(i)
Private final consumption expenditure
(ii)
Net indirect taxes
(iii) change in stock
(iv) Net current transfer from abroad
(v)
Government final consumption expenditure
(vi) Consumption of fixed capital
(vii) Net fixed capital formation
(viii) Net factor income from abroad
(ix) Net imports
₹
50
60
10
500
(-)25
10
100
10
100
160
150
₹ in crores
1750
100
25
(-) 25
(-)20
300
50
50
100
100
₹ in crores
200
20
(-)5
(-)10
50
15
30
5
10
5
Calculate NNPFC
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
6
7
Particulars
Government final consumption expenditure
Net exports
Change in stock
Consumption of fixed capital
Private final consumption expenditure
Net factor income from abroad
Net domestic capital formation
Net current transfers from abroad
Net indirect taxes
Calculate GNPMP
Particulars
(i)
Imports
(ii)
Government final consumption expenditure
(iii) Net factor income from abroad
(iv) Net current transfer from abroad
(v)
Private final consumption expenditure
(vi) Subsidies
(vii) Indirect taxes
(viii) Net domestic capital formation
(ix) Exports
(x)
Consumption of fixed capital
₹ in crores
20
60
(-)5
5
200
10
40
70
20
15
Calculate GNPFC
Particulars
(i)
Net change in stock
(ii)
Government final consumption expenditure
(iii) Net current transfer to abroad
(iv) Gross domestic fixed capital formation
(v)
Private final consumption expenditure
(vi) Net imports
(vii) Depreciation
(viii) Net factor income to abroad
(ix) Net indirect taxes
(x)
Net capital transfer to abroad
8
₹ in crores
60
10
5
20
250
(-)5
40
10
15
₹ in crores
50
100
30
200
500
40
70
(-)10
120
25
Calculate NNPFC
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
Particulars
Private final consumption expenditure
Profit
Government final consumption expenditure
Net indirect taxes
Gross domestic capital formation
Change in stock
Net factor income from abroad
Consumption of fixed capital
Net imports
*****
₹ in crores
900
100
400
100
250
50
(-)40
20
30
Solution
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2
4
GDPMP= 15,000 +11500+ (1000+200)+(500-700) = 27,500
GDPMP = (iv) + (vii) +(viii)+ (ix) + (x+iii) +v
= 500+(100+10+100) +(160+10)+(-)25 =855
NNPFC = 855-10+10-150 = 705
GDPMP = (i+viii-ix) + (ii) + (vi+vii) +(iv) =2125
NNPFC = 1980
NNPMP= 200+50+ (30+15) -10+285-15 = 275
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6
7
8
NNPFC=250+60+(40+20)-10-20+(-5)-15=320
NNPFC= 200+60+(70+15)+(20-20) -15 +(-5)- ( 40-10)=295
NI= 500+100+(200+50)-(40) -70 – (-10) -120=630
NNPFC = 900+400+250- 30-20 +(-40)-100 =1360
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