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Question
With the help of a reason, explain why the following are included in calculation of National Income.
Goods supplied free of cost by the government.
Solution
Because it is a part of the government's final consumption expenditure.
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RELATED QUESTIONS
Find net value added at factor cost:
(Rs lakh)
(i) Durable use producer goods with a life span of 10 years 10
(ii) Single use producer goods 5
iii) Sale 20
(iv) Unsold output produced during the year 2
(v) Taxes on production 1
Explain the precautions that are taken while estimating additional income by the value-added method.
Answer the following question.
What precautions should be taken while estimating national income by value-added method? Explain.
Define the following: Value Addition
How is microeconomics different from macroeconomics?
To include the value of goods or services more than one time while calculating National Income is called:
Distinguish between ‘Value of Output’ and ‘Value Added’.
Which of the following will be excluded when one calculating National Income through the Value Added Method?
What concept are all domestic variants?
When calculating the national Income which of the following will not be considered?
Statement 1: AP can take positive values only.
Statement 2: TP can take negative values only.
Complete the table:
| Producer | Value of output | Intermediate Consumption |
Value Added |
| Farmer | 2,000 | - | 2,000 |
| Banker | __(i)__ | 2,000 | 2,000 |
| Retail Seller | 4,400 | (iii) | 400 |
| Total | __(ii)__ | 6,000 | __(iv)__ |
Briefly discuss any two precautions to be taken while calculating national income by the Value Added method.
Calculate National Income and operating Surplus from the following data:
| PARTICULARS | (₹crores) | |
| (i) | Government final consumption expenditure | 900 |
| (ii) | Net factor income from abroad | 210 |
| (iii) | Private final consumption expenditure | 1000 |
| (iv) | Net domestic capital formation | 300 |
| (v) | Profits | 320 |
| (vi) | Rent | 190 |
| (vii) | Net exports | (-) 75 |
| (viii) | Interest | 200 |
| (ix) | Net indirect taxes | 265 |
