Example 1.
Calculate the value added by firm A and firm B.
| Particulars | ₹ in crores |
| (i) Domestic Sales by firm A | 4,000 |
| (ii) Exports by firm A | 1,000 |
| (iii) Purchase by firm A | 200 |
| (iv) Sales by firm B | 2,940 |
| (v) Purchase by firm B | 1,300 |
Answer
Example 11.
From the following data, calculate Net value added at factor cost.
| Particulars | ₹ in Crores |
| (i) Total Sales | 1,000 |
| (ii) Decrease in Stock | 70 |
| (iii) Production for Self Consumption | 120 |
| (iv) Purchase of raw materials | 300 |
| (v) Exports | 150 |
| (vi) Electricity Charges | 50 |
| (vii) Income Tax | 20 |
| (viii) Goods and Services Tax (GST) | 70 |
| (ix) Subsidy | 40 |
Answer
Example 13.
From the following data, calculate Net Domestic Product at factor cost.
Answer
Example 14.
Firm A Sells to firm B for Rs 50 crores and for Rs 70 crores to providte consumption.
Firm B sells for Rs 80 crores to firm C .Firm C sells for Rs 100 Crores to provite comsumption.
Calculate value added by Firm A,Band C.
View AnswerAnswer
Example 15.
Firm A buys from X inputs worth ₹ 500 crores and sells to firm B good worth
₹ 1,000 crores and to firm C goods worth ₹ 700 crores. Firm B buys from Y inputs goods worth ₹ 200
crores and sells to firm C goods worth ₹ 1,500 crores and finished goods worth ₹ 2,000 crores
to households. Firm C buys from Z inputs worth ₹ 150 crores and sells finished goods worth
₹ 4,150 croses to households. Calculate value added by firms A, B and C and GDP MP.
View AnswerAnswer
GDP MP = VALUE ADDED BY (A + B + C)
GDP MP = 1200 + 2300 + 1800 = 5300 Crores
Example 17.
In an economy, industry P sells output to Q. Q sells output to R for ₹ 600. Q's
value added is 1/2 of P's value added. Assuming P's value of inputs are 0, calculate how much
P sells to Q.
View AnswerAnswer
Assuming sales by P to Q - x
P's sales = Q's Intermediate Consumption
Q's output = 1/2 of P's Value added
Q's output* = 1/2 * x
600 - x = x/2
2*(600-x) = x
1200 - 2x = x
1200 = x + 2x
1200 = 3x
x = 1200/3
x = ₹ 400
Therefore, P sells output worth ₹ 400 to Q.
Q's output* = Sales - Intermediate Consumption
Q's output = 600 - x
Example 18.
Sales by Firm A are ₹ 80 crores and sales by firm Bare ₹ 300 crores. Value added
by B and C are equal. Value of output of C and D are ₹ 280 crores each. Value added by D
is ₹ 120 crores and GDP MP is ₹ 520 crores. Assuming A's value of inputs are zero, calculate:
(i) Value added by firm B and firm C; (ii) Value of Inputs of firm B; (iii) Value of Inputs of firm C.
View AnswerAnswer
In this ques,
we are given that
Value added by Firm b = Value added by Firm C
Assuming Value added by Firm B and C = "x"
In this ques,
we are given GDP mp = 520
GDP MP = Value Added by Firm ( A + B + C + D)
520 = 80 + x + x + 120
520 = 2x + 200
2x = 520 - 200
2x = 320
x = 160 Crores
Value of Input of Firm B = Output - Input
160 = 300 - Input
Input = 300-160 = 140 Crores
Value of Input of Firm C = Output - Input
160 = 280 - Input
Input = 280-160 = 120 Crores
Example 19.
Firm A spent Rs 500 crores on non-factor inputs and sold goods worth Rs 600 crores
to firm B and ₹ 300 crores to firm C. Firm B whose value added is ₹ 1,000 crores sold half its
output to firm Cand half to firm D. Value added by firm C is 1/2 of value added of firm D. Firm
C and Firm D sold their entire output to households. Value of Output of firm Cis equal to firm
B's value of output. Calculate value of output of firm D.
View AnswerAnswer
Example 25.
Calculate the Operating Surplus.
| Particulars | ₹ in Crores |
| (i) Sales | 4,000 |
| (ii) Compensation of employees | 800 |
| (iii) Intermediate consumption | 600 |
| (iv) Rent | 400 |
| (v) Interest | 300 |
| (vi) Net indirect taxes | 500 |
| (vii) Consumption of fixed capital | 200 |
| (viii) Mixed income | 400 |
Answer
Operating Surplus= Sales - Intermediate Consumption-Net indirect tax-Dep-Compensation to employees-Mixed Income
Operating Surplus = 4000 - 600 - 500 - 200 - 800 - 400
Operating Surplus = 1,500 Crores
Example 31.
Calculate National Income by Income and Expenditure method.
| Particulars | ₹ in crores |
| (i) Final Consumption Expenditure | |
| Private Sector | 350 |
| Government Sector | 100 |
| (ii) Mixed income of self employed | 35 |
| (iii) Gross domestic fixed capital formation | 70 |
| (iv) Opening stock | 15 |
| (v) Compensation of employees | 250 |
| (vi) Closing stock | 25 |
| (vii) Imports | 20 |
| (viii) Rent | 75 |
| (ix) Consumption of fixed capital | 10 |
| (x) Net indirect taxes | 25 |
| (xi) Interest | 25 |
| (xii) Net factor income from abroad | -5 |
| (xiii) Exports | 10 |
| (xiv) Profit | 100 |
Answer
Example 32.
Calculate National Income by Income and Expenditure method.
| Particulars | ₹ in crores |
| (i) Compensation of employees | 250 |
| (ii) Imports | 20 |
| (iii) Mixed income of self employed | 50 |
| (iv) Gross fixed capital formation | 120 |
| (v) Private final consumption expenditure | 550 |
| (vi) Consumption of fixed capital | 10 |
| (vii) Net factor income from abroad | 20 |
| (viii) Indirect taxes | 100 |
| (ix) Change in stock | 20 |
| (x) Subsidies | 20 |
| (xi) Rent | 100 |
| (xii) Interest | 200 |
| (xiii) Profit | 50 |
| (xiv) Exports | 10 |
| (xv) Government final consumption expenditure | 60 |
Answer
Example 33.
From the following data, calculate National Income by (a) Income method and
(b) Expenditure method:
| Particulars | ₹ in crores |
| (i) Private final consumption expenditure | 2,000 |
| (ii) Net capital formation | 400 |
| (iii) Change in stock | 50 |
| (iv) Compensation of employees | 1,900 |
| (v) Rent | 200 |
| (vi) Interest | 150 |
| (vii) Operating surplus | 720 |
| (viii) Net indirect tax | 400 |
| (ix) Employee ₹ ' contribution to social security schemes | 100 |
| (x) Net exports | 20 |
| (xi) Net factor income from abroad | (-) 20 |
| (xii) Government final consumption expenditure | 600 |
| (xiii) Consumption of fixed capital | 100 |
View Answer
Example 34.
From the following data, calculate National Income by Income and Expenditure Methods:
| Particulars | ₹ in crores |
| (i) Government final consumption expenditure | 100 |
| (ii) Subsidies | 10 |
| (iii) Rent | 200 |
| (iv) Wages and salaries | 600 |
| (v) Indirect taxes | 60 |
| (vi) Private final consumption expenditure | 800 |
| (vii) Gross domestic capital formation | 120 |
| (viii) Social security contribution by employer | 55 |
| (ix) Royalty | 25 |
| (x) Net factor income paid to abroad | 30 |
| (xi) Interest | 20 |
| (xii) Consumption of fixed capital | 10 |
| (xiii) Profit | 130 |
| (xiv) Net exports | 70 |
| (xv) Change in Stock | 50 |
View Answer
