Question

Calculate the Gross National Product at Market Price and Personal Income :

		(Rs crores)
(i)	Wages and salaries	800
(ii)	Personal tax	150
(iii)	Operating surplus	200
(iv)	Undistributed profits	10
(v)	Social security contributions by employers	100
(vi)	Corporate tax	50
(vii)	Net factor income to abroad	(−) 20
(viii)	Personal disposable income	1,200
(ix)	Net indirect tax	70
(x)	Consumption of fixed capital	30
(xi)	Mixed income of self-employed	500
(xii)	Royalty	9

Answer 1

Gross National Product at Market Price = Wages and salaries + Social security contribution by employers +  Operating surplus + Mixed income of self employed + Depreciation - Net Factor Income to Abroad + Net Indirect taxes
Gross National Product at Market Price = 800 + 100 + 200 + 500 + 30 - (-20) + 70
Gross National Product at Market Price = Rs 1,720 crore

Personal Income = Personal disposable income + Personal tax
Personal Income = 1200 + 150
Personal Income =  Rs 1,350 crore