Excise duty = Rs.1000 Subsidy = Rs.500 The addition of all these factor incomes gives us the calculation near by the National Income, i.e. or for the use of patents, copyrights, trademarks, etc. 1. (iii) Private Transfer Payments (i) Many final goods and services are not acquired through regular market transaction. These transactions are not production transactions. 6. (a) Environmental degradation; and • Items such as pocket money given by parents to their children, elders gifting money to the young ones are private transfer payments. (i) Gross Domestic Product at Market Price : It is the money value of all the final goods and services produced within the domestic territory of a country during an accounting year. With the help of the link provided below. Net Factor Income from Abroad NFIA = It is difference between factor income received/earned by normal residents of a country and factor income paid to non-residents of the country. Eg. Operating Surplus: The CSO (Central Statistical Organization) has defined operating surplus as “value of gross output less the sum of intermediate consumption, compensation of employees, mixed income, depreciation and NIT.” National Income at Constant Price: Is there any Free Test Series for NEET 2021? Revision is an important phase while preparing for any examination and preparing revision notes while learning is a good practice as this can be useful in the revision stage. NIT = Indirect Tax – subsidies = 0-100 = (-) 100 and vice versa If a person living in his own house, then it is assumed in an economy that he is paying rent to himself. Value Added is the excess of value of output over that of intermediate consumption. Sandeep Garg Macroeconomics Class 12 Solutions National Income and Related Aggregate, will benefit the students from the concise to the point nature of the chapter. (vi) Pensions at the time of retirement (Deferred Wage): Pensions at the time of retirement are related to factor services rendered by recipient prior to their retirement. NDPFC Compensation of employees (COE) + Operating surplus (OS) + Mixed Income (MY). Net value added at market price = – Depreciation. Private Final Consumption Expenditure (PFCE): Private final consumption expenditure is defined as consumption expenditure by consumer households (household final consumption expenditure) and private NPISH (Non-profit Institution serving households) on all types of consumer goods. Revision of National Income and Related Aggregates | Unacademy Click Here to check Important Questions of Class 12 Economics. Depreciation :means fall in value of fixed capital goods due to normal wear and tear and expected obsolescence. Personal Disposable Income from National Income. It is circular in nature. Government Final Consumption Expenditure(G), a. Government Final Consumption Expenditure (GFCE): The expenditure made by a general government on current expenditure on goods and services like public health, defence, law and order, education, etc. In India, LPG cylinder is sold at subsidized rates. NIT = IT – Subsidies (a) Income Method Gross business fixed investment is the gross amount spent on newly produced fixed capital goods. National Income :It is the sum total of all factors incomes which are earned by normal residents of a country in the form of wages. Gross Domestic Product at Factor Cost ( GDPFC): GDPFC is defined as the gross factor value of the final goods and services produced within the domestic territory of a country during an accounting year by all production units excluding Net Indirect Tax. As such these are not included in the GNP. (a) Income from property: It is the income which has been arisen from rent, interest and royalty. 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