Question

Calculate 'Net National Product at Factor Cost' and 'Gross National Disposable Income' from the following:

		(Rs in Arab)
1	Social security contributions by employees	90
2	Wages and salaries	800
3	Net current transfers to abroad	(-)30
4	Rent and royalty	300
5	Net factor income to abroad	50
6	Social security contributions by employers	100
7	Profit	500
8	Interest	400
9	Consumption of fixed capital	200
10	Net indirect tax	250

Answer 1

NNP_fc = Wages and salaries + Social security contribution by employers + Rent and royalty + Profit + Interest − Net factor income to abroad

= 800 + 100 + 300 + 500 + 400 − 50

= Rs 2050 arab

Also, Gross National Disposable Income = NNP_fc + NIT − Net current transfers to the rest of the world + Consumption of fixed capital

= 2050 + 250 − (−30) + 200

= Rs 2530 arab