Numerical Examples

on National Income &

related Aggregate

ANKIT KUMAR
PGT, ECONOMICS
 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.
Suppose the gross GNPMP = GDPMP + NFIA
domestic product at = 75000 + (-250)
market prices of India = 75000 - 250
in 2005-06 was ₹75000 = 74750 Crores
crores and net factor
income from abroad
was (-) ₹250 crores.
Calculate GNPMP.
 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
Determine GNP at market GNPMP = NDPFC + CFC + NFIA + NIT
price from the following data.
NIT = IT - subsidies
Items (₹ Crores)
Net Domestic product at = 1000 - 200 = 800
factor cost 150000
Indirect taxes 1000 GNPMP = 150000+ 50 + 50 + 800
Economic subsidies 200 = 150900 Crores
Depreciation 50
Net factor income from
abroad 50
 Question- 3

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.
 NNPFC = GNPMP - CFC - NIT

CFC = 20% of capital stock

GNPMP of an economy is
₹120000 crore and its capital = X 300000= 60000 Crores
stock is worth ₹300000 crore.
If capital stock depreciates @ NIT = IT - Subsidies
20% per annum, Indirect taxes
= 30000 - 15000 =15000 Crores
amount to ₹300000 crore and
subsidies are put at ₹15000 NNPFC = 120000 - 60000 - 15000
crore. What is National
Income. = 120000 - 75000
= 45000 Crores
 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
 NNPFC = GDPMP - CFC + NFIA - NIT
From the information given
below, calculate national NIT = IT - subsidies
income:
(₹ crores) = 75 - 50 = 25 Crores
Gross domestic product at
market price 500 NNPFC = 500 - 40 + (-20) - 25
Depreciation 40
= 500 - 85
Net factor income from
abroad (-)20 = 415 Crores
Subsidies 50
Indirect taxes 75
 Question- 5

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
 NNPMP = NDPFC + NFIA + NIT
From the following data given
below calculate NNPMP: NIT = IT - subsidies
(₹ crores) = 200 - 100 = 100 Crores
Domestic Income 3500
Excise duty 200 NNPMP = 3500 + (-100) + 100
Consumption of fixed
= 3500 Crores
capital 400
Subsidies 100
Net factor income from
abroad (-)100
 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.

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 - NIT
CFC = 10% of capital stock
= X 4000 = 400 Crores
NFIA = Factor Income from Abroad
- Factor Income to Abroad
= 200 - 100 = 100 Crores
NIT = IT - Subsidies
= 100 - 30 = 70 Crores
GNPFC = 5000 + 400 + 100 - 70
= 5500 - 70
= 5430 Crores
 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
From the information given
below, calculate GDPMP = NDPMP + CFC
(a) GDPMP (b) NNPFC
= 74905 + 4486
(₹ crores) = 79391 Crores
NDP at MP 74905
Net Indirect Taxes 8344
Income from domestic product
NNPFC = NDPMP + NFIA - NIT
accruing from abroad 1972
Current transfer from = 74905 + (-232) - 8344
abroad 2305
Depreciation 4486
= 74905 - 8576
Net factor income from = 66329 Crores
abroad (-)232
 Question- 8
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
 GDPMP = 8000
In a particular year, a business
man gets ₹8000 by selling his
products. The depreciation NNPMP = GDPMP - CFC + NFIA
value of his equipments is
₹500. out of the remaining = 8000 - 500 + 0
₹7500, he pays a sales tax of = 7500
₹800 on buying of new
equipment. And finally he pays
10% of his income as income
NNPFC = NNPMP - NIT
tax. On the basis of the above
information, calculate his NIT = IT - subsidies
contribution to the following = 800 - 0 = 800
measures of income.
(1)GDP at market price NNPFC = 7500 - 800
(2) NNP at market price
(3) NNP at factor cost = 6700
 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.
 NNPFC = GDPMP - CFC + NFIA - NIT
Suppose in an imaginary
economy, GDP at market price NFIA = Factor Income from Abroad
in a particular fiscal year was
₹4000 crores, National Income - Factor Income to Abroad
was ₹2500 crores, Net factor = 0 - 400 = (-) 400 Crores
income paid by the economy
to rest of the world was ₹ 400
crores and the value of Net 2500 = 4000 - CFC + (-400) - 450
Indirect taxes is ₹450 crores. 2500 = 3150 - CFC
Estimate the value of
consumption of fixed capital CFC = 3150 - 2500
for the economy from the = 650 Crores
given data.
 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
Calculate net Indirect taxes
from the following data:
NNPMP = GDPFC - CFC + NFIA + NIT
3750 = 3200 - 250 + (-100) + NIT
Items (₹ crores)
Gross domestic product at 3750 = 2850 + NIT
factor cost 3200 NIT = 3750 - 2850
Net factor income from
abroad (-)100 = 900 Crores
Net national product at
market price 3750
Consumption of
fixed capital 250
 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
 NDPMP = GNPFC - CFC - NFIA + NIT
Calculate net factor income
from abroad from the NIT = IT - subsidies
following data: = 10500 - 1900 = 8600 Crores
Items (₹ crores)
75000 = 71200 - 5100 - NFIA + 8600
NDPMP 75000
GNPFC 71200 75000 = 79800 - 5100 - NFIA
Depreciation 5100 75000 = 74700 - NFIA
Subsidies 1900
NFIA = 74700 - 75000
Indirect tax 10500
= (-)300 Crores
 Question- 12

If real GDP is ₹200 and price index is 110. Calculate Nominal GDP.
 Real GDP = X 100

If real GDP is ₹200 and price 200 = X 100

index is 110. Calculate
Nominal GDP.
Nominal GDP =

= 220
 Question- 13

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

Real GDP.
If the nominal GDP is ₹1200 Real GDP = X 100
and price index is 120,
calculate Real GDP.
= X 100
= 1000
 Question- 14

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.
The value of nominal GNP of
an economy in a particular
year is ₹4000 crores. While GNP Deflator = X 100
calculating GNP for the same
year at constant price becomes
₹3500 crores. Calculate the
= X 100
value of GNP Deflator.
= 114.3
T ha n k
You

ANKIT KUMAR
PGT, ECONOMICS