How each table is made
Every problem starts from one invented economy. Factor incomes come first, then GDP at market price, then the spending that buys the same GDP, so the income and expenditure methods always agree. The table shows only what the question needs, a couple of items that must be left out, and sometimes a figure given in parts (profit as dividends, corporation tax and undistributed profits, never both). Net factor income from abroad, net indirect taxes, change in stock and net exports are negative in some tables.
An example: set NNPFC5
Problem 1 asks for national income by both methods. Income method: operating surplus is rent and royalty, interest and profit, 100 + 135 + 215 = 450; domestic income adds compensation of employees and mixed income, 610 + 450 + 200 = 1,260; national income adds net factor income from abroad, 1,260 + 70 = ₹1,330 crore. Expenditure method: GDP at market price is 960 + 445 + 295 + (−50) + (−60) = 1,590, with a fall in stock and negative net exports; taking away consumption of fixed capital and net indirect taxes, 1,590 − 135 − 195 = 1,260, and adding 70 gives ₹1,330 crore again. The ₹140 crore of personal income taxes is left out. Open set NNPFC5
What each course asks
CBSE class 12 follows NCERT Introductory Macroeconomics chapter 2: national income is NNP at factor cost, reached from GDP at market price by adding net factor income from abroad and taking away depreciation and net indirect taxes, with personal income, private income and national disposable income built on it. ISC class 12 uses the same aggregates and asks for national disposable income gross and net. Cambridge 9708 (topic 4.1) works in GDP, GNI and NNI, and moves from market prices to basic prices with taxes and subsidies on products.
Questions
How do you calculate national income from the following data?
Find domestic income (NDPfc) first, then add net factor income from abroad. By the income method, add compensation of employees, operating surplus and mixed income. By the expenditure method, add the final expenditures to get GDP at market price, then take away consumption of fixed capital and net indirect taxes.
What is the difference between domestic income and national income?
Domestic income (NDPfc) is the factor income earned inside the country. National income (NNPfc) adds net factor income from abroad: what residents earn abroad minus what non-residents earn here. A question that asks for domestic income does not need it.
Why do the income and expenditure methods give the same answer?
Spending on final goods is received by someone as wages, rent, interest, profit or mixed income, once depreciation and net indirect taxes are taken out. NCERT writes the three methods as one identity. Every table here is built from one economy, so both methods always agree.
Which items are not included in national income?
Transfer payments such as pensions and scholarships, second-hand goods, shares and bonds bought, interest on national debt and on consumption loans, and gifts from abroad. Brokerage and a dealer's commission are included because they pay for a service produced this year.
What if subsidies are more than indirect taxes?
Net indirect taxes are then negative, printed as (−) 20. Taking away (−) 20 adds 20, so national income at factor cost comes out higher than at market price. Net factor income from abroad, change in stock and net exports can be negative in the same way.
How is the GDP deflator calculated?
Nominal GDP divided by real GDP, times 100. Real GDP values this year's output at base-year prices. A deflator above 100 means prices have risen since the base year; below 100, they have fallen.
Can each student get different numbers?
Yes. Share with class sends one set to everyone. To print, choose 2 to 30 copies: each student gets a different set with its own code, and the answer keys follow the worksheets.
Sources, checked October 27, 2026: NCERT Introductory Macroeconomics, chapter 2, National Income Accounting (PDF, reprint 2026-27); Cambridge AS and A Level Economics 9708 syllabus 2026 to 2028 (PDF), 4.1; UN System of National Accounts 2008 (PDF), 6.27 to 6.34 and 10.39, for what is inside the production boundary.