CBSE 2018 Class 12 Economics Re-Exam

Question : 15

Total: 15

Calculate (a) Operating Surplus, and (b) Domestic Income:

(i)	Compensation of employees	2,000
(ii)	Rent and interest	800
(iii)	Indirect taxes	120
(iv)	Corporation tax	460
(v)	Consumption of fixed capital	100
(vi)	Subsidies	20
(vii)	Dividend	940
(viii)	Undistributed profits	300
(ix)	Net factor income to abroad	150
(x)	Mixed income	200

Solution:

(a) Operating Surplus:
‌‌ OS = Corporation tax + Rent and Interest + Dividend + Undistributed profits.
OS=(iv)+(ii)+(‌ vii ‌)+(‌ viii) ‌)
=460+800+940+300
‌=₹2,500‌ crores ‌
(b) Domestic Income :
NDPFC= Compensation of employees + Operating surplus + Mixed income
‌=2000+2500+200=4,700‌ crores
‌ OS ‌=2,500‌ crores ‌
‌ DI ‌=4,700‌ crores ‌

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