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Numerical Examples on National Income & related Aggregate

ANKIT KUMAR

PGT, ECONOMICS

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Question- 1

​

​

Suppose the gross domestic product at market prices of India in 2005-06 was ₹75000 crores and net factor income from abroad was (-) ₹250 crores. Calculate GNPMP.

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Suppose the gross domestic product at market prices of India in 2005-06 was ₹75000 crores and net factor income from abroad was (-) ₹250 crores. Calculate GNPMP.

GNPMP

= GDPMP

+ NFIA

= 75000

+ (-250)

= 75000

- 250

= 74750 Crores

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Question- 2

​

Determine GNP at market price from the following data.

​

Items (₹ Crores)

  1. Net Domestic product at factor cost 150000
  2. Indirect taxes 1000
  3. Economic subsidies 200
  4. Depreciation 50
  5. Net factor income from abroad 50

​

​

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Determine GNP at market price from the following data.

​

Items (₹ Crores)

Net Domestic product at

factor cost 150000

Indirect taxes 1000

Economic subsidies 200

Depreciation 50

Net factor income from

abroad 50

GNPMP

= NDPFC

+ CFC

+ NFIA

+ NIT

NIT

= IT

- subsidies

= 1000

- 200

= 800

GNPMP

= 150000

+ 50

+ 50

+ 800

= 150900 Crores

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Question- 3

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​

GNPMP of an economy is ₹120000 crore and its capital stock is worth ₹300000 crore. If capital stock depreciates @ 20% per annum, Indirect taxes amount to ₹30000 crore and subsidies are put at ₹15000 crore. What is National Income.

​

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GNPMP of an economy is ₹120000 crore and its capital stock is worth ₹300000 crore. If capital stock depreciates @ 20% per annum, Indirect taxes amount to ₹300000 crore and subsidies are put at ₹15000 crore. What is National Income.

NNPFC

= GNPMP

- CFC

- NIT

CFC

= 20% of capital stock

 

X 300000

= 60000 Crores

NIT

= IT

- Subsidies

= 30000

- 15000

=15000 Crores

NNPFC

= 120000

- 60000

- 15000

= 120000

- 75000

= 45000 Crores

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Question- 4

​

​

From the information given below, calculate national income:

​

(₹ crores)

  1. Gross domestic product at market price 500
  2. Depreciation 40
  3. Net factor income from abroad (-)20
  4. Subsidies 50
  5. Indirect taxes 75

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From the information given below, calculate national income:

(₹ crores)

Gross domestic product at market price 500

Depreciation 40

Net factor income from

abroad (-)20

Subsidies 50

Indirect taxes 75

NNPFC

= GDPMP

- CFC

+ NFIA

- NIT

NIT

= IT

- subsidies

= 75

- 50

= 25 Crores

NNPFC

= 500

- 40

+ (-20)

- 25

= 500

- 85

= 415 Crores

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Question- 5

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​

From the following data given below calculate NNPMP:

​

(₹ crores)

  1. Domestic Income 3500
  2. Excise duty 200
  3. Consumption of fixed capital 400
  4. Subsidies 100
  5. Net factor income from abroad (-)100

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From the following data given below calculate NNPMP:

(₹ crores)

Domestic Income 3500

Excise duty 200

Consumption of fixed

capital 400

Subsidies 100

Net factor income from

abroad (-)100

NNPMP

= NDPFC

+ NFIA

+ NIT

NIT

= IT

- subsidies

= 200

- 100

= 100 Crores

NNPMP

= 3500

+ (-100)

+ 100

= 3500 Crores

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Question- 6

​

​

The domestic product at market price of an economy is ₹5000 crores. The capital stock is worth ₹4000 crores and it depreciates at the rate of 10% annum. Indirect taxes amount to ₹100 crores, subsidies amount to ₹30 crores, factor income from the rest of world is ₹200 crores and to rest of world is ₹100 cores. Find out the gross national product at factor cost.

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The domestic product at market price of an economy is ₹5000 crores. The capital stock is worth ₹4000 crores and it depreciates at the rate of 10% annum. Indirect taxes amount to ₹100 crores, subsidies amount to ₹30 crores, factor income from the rest of world is ₹200 crores and to rest of world is ₹100 cores. Find out the gross national product at factor cost.

GNPFC

= NDPMP

+ CFC

+ NFIA

CFC

= 10% of capital stock

 

X 4000

= 400 Crores

NIT

= IT

- Subsidies

= 100

- 30

= 70 Crores

GNPFC

= 5000

+ 400

+ 100

= 5500

- 70

= 5430 Crores

- NIT

NFIA

= Factor Income from Abroad

- Factor Income to Abroad

= 200

- 100

= 100 Crores

- 70

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Question- 7

​

From the information given below, calculate

(a) GDPMP (b) NNPFC

​

(₹ crores)

  1. NDP at MP 74905
  2. Net Indirect Taxes 8344
  3. Income from domestic product accruing from abroad 1972
  4. Current transfer from abroad 2305
  5. Depreciation 4486
  6. Net factor income from abroad (-)232

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From the information given below, calculate

(a) GDPMP (b) NNPFC (₹ crores)

NDP at MP 74905

Net Indirect Taxes 8344

Income from domestic product accruing from abroad 1972

Current transfer from

abroad 2305

Depreciation 4486

Net factor income from

abroad (-)232

GDPMP

= NDPMP

+ CFC

= 74905

+ 4486

= 79391 Crores

NNPFC

= NDPMP

+ NFIA

= 74905

+ (-232)

= 74905

- 8576

= 66329 Crores

- NIT

- 8344

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Question- 8

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​

In a particular year, a business man gets ₹8000 by selling his products. The depreciation value of his equipments is ₹500. out of the remaining ₹7500, he pays a sales tax of ₹800 on buying of new equipment. And finally he pays 10% of his income as income tax. On the basis of the above information, calculate his contribution to the following measures of income.

  1. GDP at market price (2) NNP at market price

(3) NNP at factor cost

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In a particular year, a business man gets ₹8000 by selling his products. The depreciation value of his equipments is ₹500. out of the remaining ₹7500, he pays a sales tax of ₹800 on buying of new equipment. And finally he pays 10% of his income as income tax. On the basis of the above information, calculate his contribution to the following measures of income.

(1)GDP at market price

(2) NNP at market price

(3) NNP at factor cost

NNPFC

= NNPMP

- NIT

NIT

= IT

- subsidies

= 800

- 0

= 800

NNPFC

= 7500

- 800

= 6700

GDPMP

= 8000

NNPMP

= GDPMP

- CFC

+ NFIA

= 8000

- 500

+ 0

= 7500

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Question- 9

​

Suppose in an imaginary economy, GDP at market price in a particular fiscal year was ₹4000 crores, National Income was ₹2500 crores, Net factor income paid by the economy to rest of the world was ₹ 400 crores and the value of Net Indirect taxes is ₹450 crores. Estimate the value of consumption of fixed capital for the economy from the given data.

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Suppose in an imaginary economy, GDP at market price in a particular fiscal year was ₹4000 crores, National Income was ₹2500 crores, Net factor income paid by the economy to rest of the world was ₹ 400 crores and the value of Net Indirect taxes is ₹450 crores. Estimate the value of consumption of fixed capital for the economy from the given data.

NNPFC

= GDPMP

- CFC

+ NFIA

2500

= 3150

- CFC

= 650 Crores

- NIT

NFIA

= Factor Income from Abroad

- Factor Income to Abroad

= 0

- 400

= (-) 400 Crores

2500

= 4000

- CFC

+ (-400)

- 450

CFC

= 3150

- 2500

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Question- 10

​

Calculate net Indirect taxes from the following data:

​

​

Items (₹ crores)

  1. Gross domestic product at factor cost 3200
  2. Net factor income from abroad (-)100
  3. Net national product at market price 3750
  4. Consumption of fixed capital 250

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Calculate net Indirect taxes from the following data:

​

​

Items (₹ crores)

Gross domestic product at factor cost 3200

Net factor income from

abroad (-)100

Net national product at

market price 3750

Consumption of

fixed capital 250

NNPMP

= GDPFC

- CFC

+ NFIA

3750

= 2850

+ NIT

= 900 Crores

+ NIT

3750

= 3200

- 250

+ (-100)

+ NIT

NIT

= 3750

- 2850

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Question- 11

​

Calculate net factor income from abroad from the following data:

​

Items (₹ crores)

  1. NDPMP 75000
  2. GNPFC 71200
  3. Depreciation 5100
  4. Subsidies 1900
  5. Indirect tax 10500

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Calculate net factor income from abroad from the following data:

​

Items (₹ crores)

NDPMP 75000

GNPFC 71200

Depreciation 5100

Subsidies 1900

Indirect tax 10500

NDPMP

= GNPFC

- NFIA

+ NIT

NIT

= IT

- subsidies

= 10500

- 1900

= 8600 Crores

75000

= 71200

- 5100

- NFIA

= (-)300 Crores

- CFC

+ 8600

75000

= 79800

- 5100

- NFIA

75000

= 74700

- NFIA

NFIA

= 74700

- 75000

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Question- 12

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​

If real GDP is ₹200 and price index is 110. Calculate Nominal GDP.

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If real GDP is ₹200 and price index is 110. Calculate Nominal GDP.

 

X 100

Real GDP

 

X 100

200

 

Nominal GDP

= 220

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Question- 13

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​

If the nominal GDP is ₹1200 and price index is 120, calculate Real GDP.

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If the nominal GDP is ₹1200 and price index is 120, calculate Real GDP.

X 100

 

X 100

Real GDP

 

= 1000

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Question- 14

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The value of nominal GNP of an economy in a particular year is ₹4000 crores. While calculating GNP for the same year at constant price becomes ₹3500 crores. Calculate the value of GNP Deflator.

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The value of nominal GNP of an economy in a particular year is ₹4000 crores. While calculating GNP for the same year at constant price becomes ₹3500 crores. Calculate the value of GNP Deflator.

X 100

 

X 100

GNP Deflator

 

= 114.3

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ANKIT KUMAR

PGT, ECONOMICS

Thank

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