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a) From the following data calculate the value of Domestic Income:
| S. No. | ITEMS | Amount(in crores) |
| i) | Compensation of Employees | 2000 |
| ii) | Rent and Interest | 800 |
| iii) | Indirect Taxes | 120 |
| iv) | Corporate Tax | 460 |
| v) | Consumption of Fixed Capital | 100 |
| vi) | Subsidies | 20 |
| vii) | Dividend | 940 |
| viii) | Undistributed Profits | 300 |
| ix) | Net Factor Income from abroad | 150 |
| x) | Mixed Income of Self Employed | 200 |
(3 Marks)
Answer
a) Domestic Income = NDPfc
NDPfc = Compensation of Employees + Rent and Interest + Corporate Tax + Dividend + Undistributed Profits + Mixed Income of Self Employed
Domestic Income (NDP@fc) =(i)+(ii)+(iv)+(vii)+(viii)+(x)
NDPfc=₹2000+₹800+₹460+₹940+₹300+₹200
NDPfc=₹4,700 crore
b) Distinguish between ‘Value of Output’ and ‘Value Added’.
(2 Marks)
Answer
Value of output is the estimated money value of all the goods and services, inclusive of change in stock and production for self-consumption. Whereas,
Value added is the excess of value of output over the value of intermediate consumption.
