Read the passage carefully and answer the questions based on the passage:
Composition of GDP: Income Method
|
S.No. |
Items |
Estimates (in crores) |
|
1 |
Compensation for employees |
2000 |
|
2 |
Rent |
20 |
|
3 |
Interest |
30 |
|
4 |
Royalty |
40 |
|
5 |
Profit |
50 |
|
6 |
Mixed income for self-employed |
1000 |
|
7 |
Net factor income from abroad |
-3 |
|
8 |
Indirect taxes |
500 |
|
9 |
Subsidies |
400 |
|
10 |
Depreciation |
260 |
Calculate Operating surplus.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Rs. 140
Operating Surplus is a component of national income calculated using the Income Method. It represents the income earned by the owners of capital — i.e., those who provide land, capital, or entrepreneurial effort — excluding wages and salaries. Thus, Operating Surplus includes:
-
Rent – Income from land or buildings
-
Interest – Income from lending capital
-
Royalty – Income from intellectual property or natural resources
-
Profit – Income earned by entrepreneurs (excluding wages)
Given, Rent = ₹20 crores, Interest = ₹30 crores, Royalty = ₹40 crores,Profit = ₹50 crores
Operating Surplus=20 + 30 +40 + 50
= ₹140 crores