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Based on given information, estimate the value of National Income:

A. Compensation to employees in cash 300 cr

B. Compensation to employees in kind 400 cr

C. Operating surplus 865 cr

D. Profits 280 cr

E. Mixed Income 620 cr

F. Net factor income from abroad (-) 30 cr

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 3

By the income method, NDP at factor cost == Compensation of employees ++ Operating surplus ++ Mixed income =(300+400)+865+620=2185= (300+400) + 865 + 620 = 2185 cr. Profits of 280 cr are already included within operating surplus, so they are not added separately.

National Income (NNP at FC) =2185+NFIA=2185+(−30)=Rs. 2155= 2185 + NFIA = 2185 + (-30) = Rs.\ 2155 cr.

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