Question

Calculate (a) national income, and (b) net national disposable income: 

		(Rs in crores)
(i)	Compensation of employees	2,000
(ii)	Profit	800
(iii)	Rent	300
(iv)	Interest	250
(v)	Mixed-income of self-employed	7,000
(vi)	Net current transfers to abroad	200
(vii)	Net exports	(-) 100
(viii)	Net indirect taxes	1,500
(ix)	Net factor income to abroad	60
(x)	Consumption of fixed capital	120

Answer 1

National Income or NNP_FC = Compensation of Employees + Rent + Profit + Interest + Mixed income of self-employed – Net Factor Income to Abroad
NNP_FC = 2000 + 300 + 800 + 250 + 7000 – 60
NNP_FC = 10,290
 
Net National Disposable Income = NNP_FC + Net Indirect Taxes – Net current transfers to abroad
Net National Disposable Income = 10,290 + 1,500 – 200 = 11,590.