a) From the following data calculate the value of Domestic Income:
|S. No.||ITEMS||Amount(in crores)|
|i)||Compensation of Employees||2000|
|ii)||Rent and Interest||800|
|v)||Consumption of Fixed Capital||100|
|ix)||Net Factor Income from abroad||150|
|x)||Mixed Income of Self Employed||200|
a) Domestic Income = NDPfc
NDPfc = Compensation of Employees + Rent and Interest + Corporate Tax + Dividend + Undistributed Profits + Mixed Income of Self Employed
Domestic Income (NDP@fc) =(i)+(ii)+(iv)+(vii)+(viii)+(x)
b) Distinguish between ‘Value of Output’ and ‘Value Added’.
Value of output is the estimated money value of all the goods and services, inclusive of change in stock and production for self-consumption. Whereas,
Value added is the excess of value of output over the value of intermediate consumption.