Question

Calculate Net National Product at Market Price and Gross National Disposable Income:

		(Rs crores)
1	Net factor income to abroad	(-)10
2	Net current transfers to abroad	5
3	Consumption of fixed capital	40
4	Compensation of employees	700
5	Corporate tax	30
6	Undistributed profits	10
7	Interest	90
8	Rent	100
9	Dividends	20
10	Net indirect tax	110
11	Social security contributions by employees	11

Answer 1

Net National Product at Market Prices = Compensation of employees + Rent + Interest + Dividends + Corporate tax + Undistributed profits − Net factor income to abroad + Net indirect taxes

= 700 + 100 + 90 + 20 + 30 + 10 −(−10) + 110

= Rs 1070 crore

Gross National Disposable Income = Net national product at market prices − Net current transfers to abroad + Consumption of fixed capital

= 1070 − 5 + 40

= Rs 1105 crore