Question

Calculate National Income:
Compensation of employees = ₹500 crore
Rent = ₹100 crore
Interest = ₹150 crore
Profit = ₹250 crore
Mixed Income = ₹50 crore

Hint:

"Operating Surplus" is a collective term for property and entrepreneurial income (Rent + Interest + Profit). Always group them together if they are listed separately.

Answer 1

Step 1: Understanding the Concept:
National Income (NNPFC) can be calculated using the Income Method. The first step is to find the Net Domestic Product at Factor Cost (NDPFC), also known as Domestic Income.

Step 2: Formula for Domestic Income:
NDPFC = Compensation of Employees (COE) + Operating Surplus (Rent + Interest + Profit) + Mixed Income

Step 3: Calculation:

COE = 500
Operating Surplus = 100 + 150 + 250 = 500
Mixed Income = 50

NDPFC = 500 + 500 + 50 = 1050 crore

Step 4: Final Answer:
Since no "Net Factor Income from Abroad" (NFIA) is provided in the data, we assume it is zero. Therefore, National Income (NNPFC) = NDPFC + NFIA.
National Income = 1050 + 0 = ₹1050 crore