Question

1. a.) From the following data, calculate national income by income method                              &

1. a.) From the following data, calculate national income by income method                                                                                                                                       

Items                                                                                 (Units of m)

  1. Compensation of employees                                                     800
  2. Mixed income of self-employed                                                 900
  3. Net factor income from abroad                                                 - 50
  4. Rent                                                                                       350
  5. Profit                                                                                      600
  6. Consumption of fixed capital                                                     200
  7. Net indirect taxes                                                                    250
  8. Interest                                                                                   450
  9. Operating Surplus                                                                   1400
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Answer #1

Rent = Compensation of employee + Rent + Profits + Interest + Mixed Income

Compensation of employees = 800

Rent = 350

Interest = 450

Profits = 600

Mixed Income = 900

Thus national Income = 800 + 350 + 450 + 600 + 900 = 3100

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