The table below shows the data for the country of Magnolia.
Complete the national income accounting framework by filling in the
|Consumption||Compensation of employees||820|
|Gross investment||360||Gross operating surplus||360|
|Government spending||390||Gross mixed income|
|Net exports||-30||Taxes less subsidies on production||70|
|Indirect taxes (net of subsidies)||150|
|Gross domestic product at market prices||Gross domestic income at market prices|
|Less depreciation||Less depreciation||110|
|Less indirect taxes (net of subsidies)||Less indirect taxes (net of subsidies)|
|Net domestic product at basic prices||Net domestic income at basic prices|
|+/- net foreign factor income||+/- net foreign factor income||-10|
|Net national product at basic prices||(Net) national income|
|Add transfer payments||210|
|Less undistributed profit||50|
|Less corporate profit tax||150|
|Less other income items||60|
|Less personal income taxes||260|
NDP at basic prices=GDP at market prices-Depreciation-Net indirect taxes=1620-110-150=1360.
NNP at basic prices=NDP at basic prices+Net foreign factor income=1360+(-10)=1350=(Net) National income using Income method.
Now Gross domestic income at market prices=1620=Value added+Net indirect taxes=Value added+150.
So, Value added=1620-150=1470.
Value added=Compensation of employees+Gross operating surplus+Mixed income+Other taxes less subsidies on production.
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