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National Income Accounting — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsNational Income Accounting4 Marks
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 (NNPFC) = 50,000

We know,

NNPFC = GDPMP - Consumption of Fixed Capital - NIT + NFIA
50,000 = GDPMP - 700 - 1,000 + 500
GDPMP = 51,200

Now, we know as per the expenditure method:

GDPMP = 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, NNPFC = NDPFC + NFIA
50,000 = NDPFC + 500
NDPFC = 45,500
Also,
NDPFC = 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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