Question
Given the following data, find the missing values of ‘Private Final Consumption Expenditure’ and ‘Operating surplus’.
S.No.
Particulars
Amount
(In $₹$ crores$)$
$(i)$
National Income
$50,000$
$(ii)$
Net Indirect Taxes
$1,000$
$(iii)$
Private Final Consumption Expenditure
$?$
$(iv)$
Gross Domestic Capital Formation
$17,000$
$(v)$
Profits
$1,000$
$(vi)$
Government Final Consumption Expenditure
$12,500$
$(vii)$
Wages & Salaries
$20,000$
$(viii)$
Consumption of Fixed Capital
$700$
$(ix)$
Mixed Income of Self Employed
$13,000$
$(x)$
Operating Surplus
$?$
$(xi)$
Net Factor Income from Abroad
$500$
$(xii)$
Net Exports
$2,000$

Answer

National Income $\ce{(NNP_{FC})} = 50,000$
We know,$\ce{NNP_{FC} = GDP_{MP}}- $
Consumption of Fixed Capital $- \ce{NIT + NFIA}50,000$
$\ce{= GDP_{MP }}- 700 - 1,000 + 500$
$\ce{GDP_{MP}} = 51,200$
Now, we know as per the expenditure method:
$\ce{GDP_{MP }}=$ Private Final Consumption Expenditure $+$ Government Final Consumption Expenditure $+$ Gross Domestic Consumption Expenditure $+$ Net Exports
$51,200 = P + 12,500 + 17,000 + 2,000$
Private Final Consumption Expenditure $= ₹ 19,700$
Now, $\ce{NNP_{FC} = NDP_{FC} + NFIA}$
$50,000 = \ce{NDP_{FC}}+ 500$
$\ce{NDP_{FC}} = 45,500$
Also,
$\ce{NDP_{FC}} =$ Wages and Salaries $+$ Operating Surplus $+$ Mixed Income
$45,500 = 20,000 +$ OS $+ 13,000$
OS $= 12,500$
So, operating surplus is equal to $₹\ 12,500.$

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