50 Important Numerical of Expenditure Method (National Income) with solutions class 12 CBSE Board

Numerical of national income by expenditure method. National Income. important numerical of expenditure method of national income

Formula of Expenditure Method to Calculate National Income

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Deep concept clarity of expenditure method of National Income

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I am solving some very important numerical of expenditure method with board examination point of view.

1 Calculate Net National Product at Market Price:

Items	(₹ in crore)
1. Gross domestic fixed capital formation	400
2. Private final consumption expenditure	8000
3. Government final consumption expenditure	3000
4. Change in Stock	50
5. consumption of fixed capital	40
6. Net indirect taxes	100
7. Net exports	– 60
8. Net factor income to abroad	– 80
9. Net current transfers from abroad	100
10. Dividend	100

[CBSE Delhi – 2017]

Solution:-

Gross Domestic Capital Formation = Gross Domestic fixed capital formation + change in stock

Gross Domestic Capital Formation = 400 + 50 = ₹450

GDP at MP = Private Final consumption expenditure + Government Final Consumption Expenditure + Gross domestic capital formation + Net Exports

GDP at MP = 8000 + 3000 + 450 – 60

GDP at MP = ₹11390

NNP at MP = GDP at MP – consumption of fixed capital + NFIA

NNP at MP = 11390 – 40 – (- 80) = ₹11430

2. Calculate National Income

Items	(₹ in crore)
1. Net factor income to abroad	– 50
2. Net indirect taxes	800
3. Net current transfers from rest of the world	100
4. Net imports	200
5. Private final consumption expenditure	5000
6. Government final consumption expenditure	3000
7. Gross domestic capital formation	1000
8. consumption of fixed capital	150
9. change in stock	– 50
10. Mixed income	4000
11. Scholarship to students	80

[CBSE Delhi – 2017]

Solution:-

GDP at MP = Private Final consumption expenditure + Government Final Consumption Expenditure + Gross domestic capital formation + Net Exports

GDP at MP = 5000 + 3000 + 1000 + (- 200) = ₹8800

National Income = NNP at FC = GDP at MP – consumption of fixed capital – Net Indirect tax + NFIA

National Income = 8800 – 150 – 800 + 50 = ₹7900 crore

3. Calculate Net Domestic Product at Factor Cost

Items	(₹ in crore)
1. Private final consumption expenditure	8000
2. Government final consumption expenditure	1000
3. Exports	70
4. Imports	120
5. Consumption of fixed capital	60
6. Gross domestic fixed capital formation	500
7. Change in stock	100
8. Factor income to abroad	40
9. Factor income from abroad	90
10. Indirect taxes	700
11. Subsidies	50
12. Net Current transfers to abraod	(-) 30

[CBSE Delhi – 2017]

Solution:-

Gross Domestic Capital Formation = Gross Domestic Fixed capital formation + Change in stock

Gross Domestic Capital Formation = 500 + 100 = ₹600

GDP at MP = Private Final consumption expenditure + Government Final Consumption Expenditure + Gross domestic capital formation + Net Exports (Exports – Imports)

GDP at MP = 8000 + 1000 + 600 + (70 – 120) = ₹9550

NDP at FC = GDP at MP – consumption of fixed capital – Net indirect tax (Indirect tax – subsidies)

NDP at FC = 9550 – 60 – (700 – 50) = ₹8840 crore

4. Calculate National Income

Items	(₹ in crore)
1. Corporation tax	100
2. Private final consumption expenditure	900
3. Personal income tax	120
4. Government final consumption expenditure	200
5. Undistributed profits	50
6. Change in stocks	– 20
7. Net Domestic fixed capital formation	120
8. Net Imports	10
9. Net Indirect tax	150
10. Net factor income from abroad	– 10
11. Private Incom	1000

[CBSE (AI) 2016]

Solution:-

Gross Domestic Fixed capital formation = Net domestic fixed capital formation + consumption of fixed capital formation

Gross Domestic Fixed Capital Formation = 120 + 0 = 120

Gross Domestic Capital Formation = Gross Domestic Fixed capital formation + Change in stock

Gross Domestic Capital Formation = 120 + ( – 20) = ₹100

GDP at MP = Private Final consumption expenditure + Government Final Consumption Expenditure + Gross domestic capital formation + Net Exports (Exports – Imports)

GDP at MP = 900 + 200 + 100 + ( – 10) = ₹1190

National Income = NNP at FC = GDP at MP – Consumption of fixed capital + NFIA – Net Indirect tax

National Income = 1190 – 0 + (- 10) – 150 = ₹1030 crore

Further Resources:-

Read Here:- 50+ Numerical of Income Method of National Income (Must Do)

Read Here:- 50+ Numerical of Value Added Method of National Income (Must Do)

5. Calculate Net National Product at Market Price:

Items	(₹ in crore)
1. Net Current transfers to abroad	10
2. Private final consumption expenditure	500
3. Current transfers from government	30
4. Net factor income to abroad	20
5. Net exports	– 20
6. Net indirect tax	120
7. National debt interest	70
8. Net Domestic Capital formation	80
9. Income accruing to government	60
10. Government final consumption expenditure	100

[CBSE (AI) 2016]

Solution:-

Gross Domestic capital formation = Net domestic capital formation + consumption of fixed capital formation

Gross Domestic Capital Formation = 80 + 0 = ₹80

GDP at MP = Private Final consumption expenditure + Government Final Consumption Expenditure + Gross domestic capital formation + Net Exports (Exports – Imports)

GDP at MP = 500 + 100 + 80 + (- 20) = ₹660

NNP at MP = GDP at MP – consumption of fixed capital + NFIA

NNP at MP = 660 – 0 – 20 = ₹ 640 crore

6. Find Gross National Product at Market Price:

Items	(₹ in crore)
1. Private final consumption expenditure	800
2. Net Current transfers to abroad	20
3. Net factor income to abroad	– 10
4. Government final consumption expenditure	300
5. Net Indirect tax	150
6. Net Domestic Capital Formation	200
7. Current transfers from government	40
8. Depreciation	100
9. Net Imports	30
10. Income accruing to government	90
11. National debt interest	50

Solution:-

Gross Domestic Capital Formation = Net Domestic Capital Formation + Depreciation

Gross Domestic Capital Formation = 200 + 100 = ₹ 300

GDP at MP = Private final consumption expenditure + Government final consumption expenditure + Gross Domestic Capital Formation – Net Imports

GDP at MP = 800 + 300 + 300 – 30

GDP at MP = ₹ 1370

GNP at MP = GDP at MP – Net factor income to abroad

GNP at MP = 1370 – ( – 10)

GNP at MP = ₹ 1380 crore

7. Calculate National Income

Items	(₹ in crore)
1. Net imports	5
2. Net domestic capital formation	15
3. Personal Income	90
4. National debt interest	10
5. Corporate tax	25
6. Government final consumption expenditure	20
7. Net factor income to abroad	– 5
8. Net indirect tax	10
9. Undistributed profits	0
10. Private final consumption expenditure	100

[CBSE (F) 2015]

Solution

NDP at MP = Private final consumption expenditure + Government final consumption expenditure + Net domestic capital formation – net imports

NDP at MP = 100 + 20 + 15 – 5

NDP at MP = 130

National Income (NNP at FC) = NDP at MP – Net factor income to abroad – Net indirect tax

NNP at FC = 130 – (- 5) – 10

NNP at FC = ₹ 125 crore

8. Calculate Net Domestic Product at Market Price.

Items	(₹ in crore)
1. Private Final consumption expenditure	400
2. Opening stock	10
3. Consumption of fixed capital	25
4. Imports	15
5. Government final consumption expenditure	90
6. Net current transfers to rest of the world	5
7. Gross domestic fixed capital formation	80
8. Closing stock	20
9. Exports	10
10. Net factor income to abroad	– 5

[CBSE AI 2015]

Solution

GDP at MP = Private final consumption expenditure + Government final consumption expenditure + Gross Domestic Fixed Capital formation + Closing stock – Opening stock + Net Exports (Exports – Imports)

GDP at MP = 400 + 90 + 80 + (20 – 10) + ( 10 – 15 )

GDP at MP = 575

NDP at MP = GDP at MP – Consumption for fixed capital

NDP at MP = 575 – 25

NDP at MP = ₹ 550

9. Calculate Net National Product at Market Price

Items	(₹ in crore)
1. Transfers Payments by government	7
2. Government final consumption expenditure	50
3. Net imports	– 10
4. Net domestic fixed capital formation	60
5. Private final consumption expenditure	300
6. Private Income	280
7. Net factor income to abroad	– 5
8. Closing Stock	8
9. Opening stock	8
10. Depreciation	12
11. Corporate tax	60
12. Retained earnings of corporations	20

[CBSE AI 2015]

Solution

NDP at MP = Private final consumption expenditure + Government final consumption expenditure + Net Domestic Fixed Capital formation + Closing stock – Opening stock – Net Imports

NDP at MP = 300 + 50 + 60 + 8 – 8 – ( – 10)

GDP at MP = 420

NNP at MP = NDP at MP – Net Factor income to abroad

NNP at MP = 420 – (-5)

NNP at MP = ₹ 425 crore

Read Here:- List of all lectures of National Income and Related Aggregates chapter

10. Calculate Net Domestic Product at Factor Cost:

Items	(₹ in crore)
1. Net Current transfers to abroad	15
2. Private final consumption expenditure	800
3. Net imports	– 20
4. Net domestic capital formation	100
5. Net factor income to abroad	10
6. Depreciation	50
7. Change in stocks	17
8. Net indirect tax	120
9. Government final consumption expenditure	200
10. Exports	30

[CBSE DELHI 2015]

Solution

NDP at MP = Private final consumption expenditure + Government final consumption expenditure + Net domestic capital formation – Net imports

NDP at MP = 800 + 200 + 100 – (-20)

NDP at MP = 1120

NDP at FC = NDP at MP – Net Indirect tax

NDP at FC = 1120 – 120

NDP at FC = ₹ 1000 Crore

Read Here:- 50 Important Numerical of Value Added Method of National Income Class 12

Read Here:- 50 Important Numerical of Income Method of National Income class 12

11. Calculate ‘National Income’.

Items	(₹ in crore)
1. Personal tax	80
2. Private final consumption expenditure	600
3. Undistributed profits	30
4. Private Income	650
5. Government final consumption expenditure	100
6. Corporate tax	50
7. Net Domestic fixed capital formation	70
8. Net Indirect tax	60
9. Depreciation	14
10. Change in stocks	– 10
11. Net imports	20
12. Net factor income to abroad	10

[CBSE DELHI 2015]

Solution:-

NDP at MP = Private final consumption expenditure + Government final consumption expenditure + Net Domestic fixed capital formation + change in stocks – Net imports

NDP at MP = 600 + 100 + 70 + (- 10) – 20

NDP at MP = 740

NNP at FC = NDP at MP – Net Factor income to abroad – Net Indirect tax

NNP at FC = 740 – 10 – 60

NNP at FC = ₹ 670 crore

12. Calculate ‘National Income’ from the following

Items	(₹ in crore)
1. Net Imports	60
2. Net current transfers to abroad	– 10
3. Net domestic fixed capital formation	300
4. Government final consumption expenditure	200
5. Private final consumption expenditure	700
6. Consumption of fixed capital	70
7. Net change in stocks	30
8. Net factor income to abroad	20
9. Net indirect tax	100

[CBSE F 2014]

Solution:-

NDP at MP = Private final consumption expenditure + Government final consumption expenditure + Net Domestic fixed capital formation + change in stocks – Net imports

NDP at MP = 700 + 200 + 300 + 30 – 60

NDP at MP = 1170

NNP at FC = NDP at MP – Net factor income to abroad – Net Indirect tax

NNP at FC = 1170 – 20 – 100

NNP at FC = ₹ 1050

13. Calculate ‘Net National Product at Market Price’ from the following.

Items	(₹ in crore)
1. Closing stock	10
2. Consumption of fixed capital	40
3. Private final consumption expenditure	600
4. Exports	50
5. Opening stock	20
6. Government final consumption expenditure	100
7. Imports	60
8. Net domestic fixed capital formation	80
9. Net current transfers to abroa	– 10
10. Net factor income to abroad	30

[CBSE AI 2014]

Solution:-

NDP at MP = Private final consumption expenditure + Government final consumption expenditure + Net domestic fixed capital formation + (closing stock – Opening stock) + Net Exports (Exports – Imports)

NDP at MP = 600 + 100 + 80 + (10 – 20) + (50 – 60)

NDP at MP = 760

NNP at MP = NDP at MP – Net factor income to abraod

NNP at MP = 760 – 30

NNP at MP = ₹ 730

14. Calculate National Income from the following.

Items	(₹ in crore)
1. Net change in stocks	50
2. Government final consumption expenditure	100
3. Net current transfers to abroad	30
4. Gross domestic fixed capital formation	200
5. Private final consumption expenditure	500
6. Net imports	40
7. Depreciation	70
8. Net factor income to abroad	– 10
9. Net Indirect tax	120
10. Net capital transfers to abroad	25

Solution:-

GDP at MP = Private final consumption expenditure + Government final consumption expenditure + Gross domestic fixed capital formation + Net change in stocks – Net imports

GDP at MP = 500 + 100 + 200 + 50 – 40

GDP at MP = 810

NNP at FC = GDP at MP – Depreciation – Net factor income to abroad – Net Indirect tax

NNP at FC = 810 – 70 – (-10) – 120

NNP at FC = ₹ 630 crore

15. Calculate ‘Net Domestic Product at Factor Cost’ from the following:-

Items	(₹ in crore)
1. Net Current transfers to abroad	5
2. Government final consumption expenditure	100
3. Net indirect tax	80
4. Private final consumption expenditure	300
5. Consumption of fixed capital	20
6. Gross domestic fixed capital formation	50
7. Net imports	– 10
8. Closing stock	25
9. Opening stock	25
10. Net factor income to abroad	10

[CBSE DELHI 2014]

Solution:-

GDP at MP = Private final consumption expenditure + Government final consumption expenditure + Gross Domestic fixed capital formation + (Closing stock – Opening stock) – Net imports

GDP at MP = 300 + 100 + 50 + (25 – 25) – (- 10)

GDP at MP = 460

NDP at FC = GDP at MP – Consumption of fixed capital – Net indirect tax

NDP at FC = 460 – 20 – 80

NDP at FC = ₹ 360 crore

16. Calculate National Income from the following:

Items	(₹ in crore)
1. Net current transfers to abroad	– 15
2. Private final consumption expenditure	600
3. Subsidies	20
4. Government final consumption expenditure	100
5. Indirect tax	120
6. Net imports	20
7. Consumption of fixed capital	35
8. Net change in stocks	– 10
9. Net factor income to abroad	5
10. Net domestic capital formation	110

[CBSE DELHI 2014]

Solution:-

NDP at MP = Private final consumption expenditure + Government final consumption expenditure + Net Domestic capital formation – Net imports

NDP at MP = 600 + 100 + 110 – 20

NDP at MP = 790

NNP at FC = NDP at FC – Net factor income to abroad – (Indirect tax – subsidies)

NNP at FC = 790 – 5 – (120 – 20)

NNP at FC = 785 – 100

NNP at FC = ₹ 685 crore

17. Calculate Gross Fixed Capital Formation from the following data:-

Items	(₹ in crore)
1. Private final consumption expenditure	1000
2. Government final consumption expenditure	500
3. Net Exports	– 50
4. Net Factor income from abroad	20
5. Gross Domestic product at market price	2500
6. Opening Stock	300
7. Closing Stock	200

Solution:-

GDP at MP = Private final consumption expenditure + Government final consumption expenditure + Gross Domestic capital formation + Net Exports

2500 = 1000 + 500 + Gross Domestic Capital Formation – 50

Gross Domestic Capital Formation = ₹ 1050

Gross Domestic Capital Formation = Gross Fixed Domestic Capital Formation + Change in stock (Closing Stock – Opening Stock)

1050 = Gross Fixed Domestic Capital Formation + (200 – 300)

Gross Fixed Domestic Capital Formation = 1050 + 100

Gross Fixed Domestic Capital Formation = ₹ 1150 crore

18. Find NDP at FC from the following data.

Items	(₹ in crore)
1. Gross Domestic fixed investment	10000
2. Inventory investment	5000
3. Depreciation	2000
4. Indirect taxes	1000
5. Subsidies	2000
6. Consumption Expenditure	20000
7. Residential Construction Investment	6000

Solution:-

GDP at MP = Consumption Expenditure + Gross Domestic Fixed Investment + Inventory Investment

GDP at MP = 20000 + 10000 + 5000

GDP at MP = ₹ 35000

NDP at FC = GDP at MP – Depreciation – (Indirect taxes – Subsidies)

NDP at FC = 35000 – 2000 – (1000 – 2000)

NDP at FC = ₹ 34000 crore

19. From the following data, calculate the GDP at both (a) Market price, and (b) Factor Cost.

Items	(₹ in crore)
1. Gross investment	90
2. Net exports	10
3. Net indirect taxes	5
4. Depreciation	15
5. Net factor income from abroad	– 5
6. Private consumption expenditure	350
7 Government purchases of goods and services	100

Solution:-

GDP at MP = Private consumption expenditure + Government purchases of goods and services + Gross Investment + net exports

GDP at MP = 350 + 100 + 90 + 10

GDP at MP = ₹ 550 crore

GDP at FC = GDP at MP – Net Indirect taxes

GDP at FC = 550 – 5

GDP at FC = ₹ 545 crore

20. Calculate the gross national product at factor cost from the following data:-

Items	(₹ in crore)
1. Net Domestic Fixed capital formation	350
2. Closing Stock	100
3. Government final consumption expenditure	200
4. Net indirect tax	50
5. Opening stock	60
6. Consumption of fixed capital	50
7. Net exports	– 10
8. Private final consumption expenditure	1500
9. Imports	20
10. Net factor income from abroad	– 10

Solution:-

Gross Domestic capital formation = net domestic fixed capital formation + consumption of fixed capital + Closing stock – Opening stock

Gross Domestic Capital formation = 350 + 50 + 100 – 60

Gross Domestic Capital formation = ₹ 440

GDP at MP = Private Final Consumption Expenditure + Government final consumption expenditure + Gross Domestic capital formation + net exports

GDP at MP = 1500 + 200 + 440 – 10

GDP at MP = ₹ 2130

Gross National Product at FC (GNP at FC) = GDP at MP + Net factor income from abroad – Net Indirect tax

GNP at FC = 2130 – 10 – 50

GNP at FC = ₹ 2070 crore

21. Calculate Gross Domestic Product at market price from the following data:-

Items	(₹ in crore)
1. Consumption of fixed capital	50
2. Closing stock	40
3. Private final consumption expenditure	500
4. Opening stock	60
5. Net factor income from abroad	– 35
6. Exports	25
7. Government final consumption expenditure	200
8. Imports	40
9. Net indirect tax	100
10. net domestic capital formation	300

Solution:-

Gross Domestic Capital Formation = Net Domestic Capital Formation + consumption of fixed capital

Gross Domestic capital formation = 300 + 50 = ₹ 350

GDP at MP = Private final consumption expenditure + Government final consumption expenditure + Gross domestic capital formation + Net Exports (Exports – Imports)

GDP at MP = 500 + 200 + 350 + (25 – 40)

GDP at MP = ₹ 1035 crore

22. Calculate national income from the following data:-

Items	(₹ in crore)
1. Gross Domestic capital formation	100
2. Net change in stocks	10
3. Consumption of fixed capital	20
4. Private final consumption expenditure	500
5. Government final consumption expenditure	200
6. Exports	80
7. Imports	70
8. Net indirect tax	60
9. Net factor income received from abroad	– 10

Solution:-

GDP at MP = Private final consumption expenditure + Government final consumption expenditure + Gross Domestic capital formation + exports – imports

GDP at MP = 500 + 200 + 100 + 80 – 70

GDP at MP = 810

NNP at FC = GDP at MP – consumption of fixed capital + Net factor income received from abroad – Net indirect tax

NNP at FC = 810 – 20 – 10 – 60

NNP at FC = ₹ 720 crore

23. Calculate NNP at MP from the following data:-

Items	(₹ in crore)
1. Household final consumption expenditure	1000
2. Net domestic fixed capital formation	100
3. Government final consumption expenditure	200
4. Final consumption expenditure of private non-profit institutions serving households	50
5. Net change in stocks	40
6. Net exports	– 20
7. Net factor income from abroad	10
8. Indirect tax	70
9. Subsidies	20

Solution:-

NDP at MP = Household final consumption expenditure + Final consumption expenditure of private non profit institutions serving households + Government final consumption expenditure + Net domestic fixed capital formation + net change in stocks + net exports

NDP at MP = 1000 + 50 + 200 + 100 + 40 – 20

NDP at MP = 1370

NNP at MP = NDP at MP + Net factor income from abroad

NNP at MP = 1370 + 10

NNP at MP = 1380 crore

24. Calculate GNP at MP from the following data:-

Items	(₹ in crore)
1. Government final consumption expenditure	300
2. Net domestic fixed capital formation	200
3. Private final consumption expenditure	2000
4. Consumption of fixed capital	40
5. Closing stock	50
6. Opening stock	40
7. Net exports	– 5
8. Net indirect tax	30
9. Net factor income from abroad	– 10

Solution:-

Gross Domestic capital formation = Net domestic fixed capital formation + consumption of fixed capital + closing stock – opening stock

Gross Domestic capital formation = 200 + 40 + 50 – 40

Gross Domestic Capital formation = 250

GDP at MP = Private final consumption expenditure + Government final consumption expenditure + G- ross Domestic capital formation + Net exports

GDP at MP = 2000 + 300 + 250 – 5

GDP at MP = 2545

GNP at MP = GDP at MP + Net factor income from abroad

GNP at MP = 2545 – 10

GNP at MP = ₹ 2535 crore

25. Calculate NVA at FC from the following data:-

Items	(₹ in crore)
1. Indirect tax	60
2. Closing stock	100
3. Sales	1000
4. Intermediate cost	420
5. Opening stock	80
6. Consumption of fixed capital	50
7. Subsidies	10

Solution:-

Value of output = Sales + closing stock – opening stock

Value of output = 1000 + 100 – 80

Value of output = 1020

NVA at MP = Value of Output – Intermediate cost

NVA at MP = 1020 – 420

NVA at MP = 600

NVA at FC = NVA at MP – (Indirect tax – subsidies)

NVA at FC = 600 – 60 + 10

NVA at FC = ₹ 550 crore

26. Find value added by firm X from the following data:-

Items	(₹ in crore)
1. Sales by firm X to firm Z	200
2. Purchases by firm Y form firm X	100
3. Sale by firm Z to firm X	150
4. Closing stock of firm X	40
5. Closing stock of firm Z	30
6. Opening stock of firm X	50

Solution:-

Value of output of firm X = Sales by firm X to firm Z + Purchases by firm Y from firm X + closing stock of firm X – Opening stock of firm X

Value of output of firm X = 200 + 100 + 40 – 50

Value of output of firm X = 290

Value added by firm X = Value of output of firm X – Sale by firm Z to firm X

Value added by firm X = 290 – 150

Value added by firm X = ₹ 140

27. A Farmer purchases ₹ 1,000 worth of seeds, ₹ 2000 worth of fertilisers, and pays ₹ 1500 as water charges to raise a wheat crop. He produces 50 quintals of wheat and sells the same at ₹ 200 per quintal. Calculate value added by the farmer.

Solution:-

farmer Value of Output = quantity * price = 50 * 200 = 10000

Intermediate consumption of farmer = seeds + fertilisers + water charges

Intermediate consumption of farmer = 1000 + 2000 + 1500

Intermediate consumption of farmer = 4500

Value added by farmer = Value of output – Intermediate consumption

Value added by farmer = 10000 – 4500

Value added by farmer = ₹ 5500

28. There are two firms A and B. A buys, ₹ 200 worth of raw materials from B. B buys ₹ 300 worth of raw materials from A. The value of total output of firm A is ₹ 1000 and that of B is ₹ 1,500. Find out value added by A and B. What measure of Value added is this?

Solution:-

Value added by firm A = value of output – purchase of raw material by firm A from B

Value added by firm A = 1000 – 200 = ₹ 800

Value added by firm B = Value of Output – purchase of raw material by firm B form A

Value added by firm B = 1500 – 300

Value added by firm B = ₹ 1200

29. Calculate NDP at factor cost:-

Items	(₹ in crore)
1. Net domestic fixed capital formation	70
2. Private final consumption expenditure	300
3. Exports	20
4. Consumption of fixed capital	10
5. Government final consumption expenditure	100
6. Closing stock	15
7. Imports	30
8. Opening stock	5
9. Net indirect tax	80
10. Net factor income to abroad	– 10

Solution:-

NDP at MP = Private final consumption expenditure + Government final consumption expenditure + Net domestic fixed capital formation + Closing stock – Opening stock + Net Exports (Exports – Imports)

NDP at MP = 300 + 100 + 70 + 15 – 5 + (20 – 30)

NDP at MP = ₹470

NDP at FC = NDP at MP – Net Indirect tax

NDP at FC = 470 – 80

NDP at FC = ₹ 390 crore

30. Calculate National Income:-

Items	(₹ in crore)
1. Net imports	15
2. Net current transfers from abroad	10
3. Goods and services tax (GST)	30
4. Net change in stocks	5
5. Net domestic capital formation	60
6. Private final consumption expenditure	350
7. Government expenditure on providing free services	75
8. Depreciation	10
9. Net factor income to abroad	– 15
10. Subsidies	5

Solution:-

NDP at MP = Private final consumption expenditure + Government expenditure on providing free services + Net domestic capital formation – Net imports

NDP at MP = 350 + 75 + 60 – 15

NDP at MP = ₹ 470

NNP at FC = NDP at MP – Net factor income to abroad – Net indirect tax (GST – Subsidies)

NNP at FC = 470 + 15 – (30 – 5)

NNP at FC = ₹ 460 crore

31. Calculate NNP at MP:-

Items	(₹ in crore)
1. Gross domestic fixed capital formation	80
2. Government final consumption expenditure	150
3. Closing stock	20
4. Private final consumption expenditure	500
5. Net domestic capital formation	70
6. Opening stock	20
7. Net imports	– 30
8. Factor income paid to abroad	15
9. Net indirect tax	40
10. Factor income received from abroad	10

Solution:-

NDP at MP = Private final consumption expenditure + Government final consumption expenditure + Net Dometic capital formation + closing stock – opening – Net imports

NDP at MP = 500 + 150 + 70 + 20 – 20 + 30

NDP at MP = ₹ 750

NNP at MP = NDP at MP + NFIA (Factor income received from abroad – Factor income paid to abroad)

NNP at MP = 750 + (10 – 15)

NNP at MP = ₹ 745 crore

Further Reading

S.N	Topics
1.	What is Macroeconomics
2.	What are Goods in economics
3.	What are Consumption Goods
4.	What are capital goods
5.	What are intermediate Goods
6.	What is intermediate consumption
7.	What are final Goods
8.	What is Final Consumption
9.	What is investment in economics
10.	What is stock and flow
11.	What are transfer payments
12.	What is circular flow of income
13.	What is Domestic Territory of a Country
14.	What is normal resident of a country
15.	Nominal GDP and Real GDP

S.N	Topics
1.	What is GDP Deflator
2.	What are externalities in economics
3.	Limitations of GDP as a measure of welfare

S.N	Topics
1.	Items to be included in National income
2.	Items to be included in Domestic Income

S.N	Topics
1.	National Income and Related Aggregates, formula, Definition, process
2.	Value added Method, formula, Definition, process
3.	Income Method, formula, Definition, process
4.	Expenditure Method, formula, Definition, process
5.

S.N	Topics
1.	150+ Numerical of Value Added Method
2.	150+ Numerical of Income Method
3.	150+ Numerical of Expenditure Method
4.	150+ Numerical of National Income and related aggregates

S.N	Topics
1.	250+ MCQs of National Income