National Income Accounting

Economics- Phase (I & II)

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If GDPFC = Rs. 24,760, operating surplus = Rs. 13,450, mixed income = Rs. 4,260 and consumption of fixed capital = Rs. 530, then compensation of employees will be:

Rs. 6,520

Rs. 7,050

Rs. 18,240

Rs.43,000

Explanation:

- GDPFC stands for Gross Domestic Product at Factor Cost. It represents the total economic output at factor cost before depreciation.

- Operating Surplus refers to the residual profit after paying for intermediate goods and services.

- Mixed Income includes earnings from self-employment and unincorporated businesses.

- Consumption of Fixed Capital is the depreciation on assets over a period of time.

To find the Compensation of Employees:

- GDPFC = Operating Surplus + Mixed Income + Consumption of Fixed Capital + Compensation of Employees

- Rs. 24,760 = Rs. 13,450 + Rs. 4,260 + Rs. 530 + Compensation of Employees

Calculate:

- Compensation of Employees = Rs. 24,760 - (Rs. 13,450 + Rs. 4,260 + Rs. 530)

- Compensation of Employees = Rs. 6,520

Option 1: Rs. 6,520 is the correct answer.

By: Abhipedia

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