Question

Calculate 'Net National Product at Market Price' and 'Personal Income'.

		(Rs crore)
(i)	Transfer payments by government	7
(ii)	Government final consumption expenditure	50
(iii)	Net imports	-10
(iv)	Net domestic fixed capital formation	60
(v)	Private final consumption expenditure	300
(vi)	Private income	280
(vii)	Net factor income to abroad	-5
(viii)	Closing stock	8
(ix)	Opening stock	8
(x)	Depreciation	12
(xi)	Corporate tax	60
Xii	Retained earnings of corporatio	20

Answer 1

Net National Product at Market = Private final consumption expenditure + Government final consumption expenditure + (Net domestic fixed capital formation + depreciation) + Change in stock − Net imports − Depreciation − Net factor income to an abroad − Net national product at market price

= 300 + 50 + 60 + 12 + (8 − 8) − (−10) − 12 − (−5)

= Rs 425 crore

Personal Income = Private income − Corporate tax − Retained earnings of corpor

= 280 − 60 − 20

= Rs 200 crore