. (a) What are the precautions taken while calculating National income by expenditure method and income method?
(b) Calculate National income
| Partculars | Rs. in crores | |
| (i) | compensation of employees | 2000 |
| (ii) | profit | 800 |
| (iii) | rent | 300 |
| (iv) | Interest | 250 |
| (v) | Mixed income of self empoiyed | 7000 |
| (vi) | Net current teansfecrs to abroad | 200 |
| (vii) | Net Exporst | -100 |
| (viii) | Net indirecct taxes | 1500 |
| (ix) | Net factor income from abroad | 600 |
| (x) | Depreciation | 120 |
### (a) Precautions in Calculating National Income by Expenditure and Income Methods
Expenditure Method:
1. Avoid Double Counting:
- Ensure that only final goods and services are counted. Intermediate goods should not be included to prevent double counting. For instance, if the expenditure on steel used in manufacturing cars is included, the value of the final car should be counted, not the steel.
2. Adjust for Depreciation:
- Depreciation (or consumption of fixed capital) must be subtracted from gross values to obtain net national income. This adjustment accounts for the reduction in value of capital goods over time due to wear and tear.
3. Consider Only Domestic Expenditure:
- Only the expenditure on goods and services produced within the ______ _____ _______ ______ ___ __________ ___ _____ ________ ______ _______.
_____ _____ ________ ________ ____ _________ ______ ____.
_____ _________ ________ ______ __________ _________ ______ ____.
______ _________ _________ ___ __________ ______ ________.
________ _________ _______ ___ _________ _________ ____ _______ __________ _________ _______ ___.
_____ ________ ________ ________ _____ ____ ___ ___ _____ ________ ________.
_____ __________ ____ _____ ____ _______.
________ _________ _________ ______ ______ ________ _________ _______ ____.
_________ ___ ________ ____ ___ _______ _________.
_____ ____ ________ __________ _____.
___ __________ ______ __________ ________.
________ _______ ______ ____ ________ _____ ________ _____.
________ _______ ___ _______ _____ ___.
_________ ______ ___ _____ ________ __________ ______ ______ ____ _______ ____ _______.
________ __________ ____ ________ _______ __________ ______ _____.
__________ _______ _______ __________ ________ _______ __________ _____ ________.
__________ _________ ____ ______ ______ __________ ____ _____.
______ ______ ________ ______ ______.
____ __________ ____ __________ _________ _____ ____ ______ ___ ________ ______ ____.
___ __________ ________ __________ ______ ______ __________ ________ ________ ___ ______ _____.
_____ _____ _________ _________ ___ _______ ________ ______.
_______ ______ ________ _________ ____ ___ _______ ______ _____.
_______ ____ ____ _______ _____ __________ ________ ___ _________.
________ __________ _______ ______ __________.
_________ ______ ______ __________ ________ __________ ___ _______ ______ __________ ____.
__________ ______ _____ ______ _________ ______ __________ ____.
___ ____ _______ _______ ______.
_____ ________ ___ ____ ___ _________ _______ _____ _____ _________ _______.
_________ _______ __________ ______ __________ ___ ______ ________ _________ ________ ____ ____.
___ _______ ___ ____ ____ _______ _______ ___ ___ _________ ________.
_________ ___ ______ ____ ________ __________ ___ ________ ______ ________ _________.
________ ___ _____ _______ ___ _________ ________.
_________ ___ _____ _______ _______.
_____ _____ ______ ____ __________.
_________ ___ ______ ______ ______ _________ ___ ____.
___ _________ _______ ___ ______ _______ ___ _____ ____ _________ _________.
_______ _____ ____ _______ ____ _________ ___ ____ ___ ____ ______.
_______ _________ ___ _________ ____ ___ ______ _____ __________ ________ ___.
_______ ______ ______ ________ ________ ___ _________ __________.
_____ _____ ____ _______ _______ ________ _____.
_____ ________ ___ _____ _________ ________ _________ _____.
_____ _________ ____ _________ ______ _____ ______ _____ _______ _____ ________.
________ _________ _____ _______ ____.
______ __________ ________ __________ ____ _____ _____ _____.
_________ __________ _____ _______ ______ _________ ___ ___ ____ ___ ______ __________.
______ ___ _______ _______ ______ ___.
_______ _____ ______ _________ _______ ____ ___ _______ _______ _________ ___ __________.
______ _______ __________ ___ ____ ____.
_______ ___ ____ ________ _____.
______ ___ _________ __________ ______ ____ _____ ______ ____ _________ ________.
_________ ____ ___ _________ ________ __________ ______ ________ _____ _______ ________.
___ ______ _______ ________ ______.
________ ______ __________ _____ _________ __________ ____ ____ ______ __________ _______.
________ ___ __________ _________ ________.
_________ __________ ______ ____ _________ _____ ________ _________ ______ ____ ____ ________.
__________ _____ ________ ______ _________ __________ ____.
_____ ____ _______ ____ ___ _______ _______ _________ ________ ___.
________ __________ _____ ______ _________ ______ ______ _____ ___ _____.
__________ __________ ______ ____ _________ ________ _______.
Get Full Answer on WhatsApp