Question

Calculate the (a) Gross National Product at market price, and (b) Net National Disposable Income

	(Rs In crores)
(i) Compensation of employee	2,500
(ii) Profit	700
(iii) Mixed income of self- employed	7,500
(iv) Government final consumption expenditure	3,00
(v) Rent	400
(vi) Interest	350
(vii) Net factor income from abroad	50
(viii) Net current transfer to abroad	100
(ix) Net indirect taxes	150
(x) Depreciation	70
(xi) Net export	40

Answer 1

NDP= Compensation of employees + Rent + Interest + Profit + Mixed income of self
employed

NDP_FC = 2,500 + 400 + 350 + 700 +7,500

∴ NDP_FC = Rs 11,450

GNP_MP = NDP_FC + Depreciation + Net factor income from abroad + Net indirect taxes

GNP_MP = 11,450 + 70 + 50 + 150

∴ GNP_MP = Rs 11,720

Net National Disposable Income (NNDI) = NDP_FC + Net indirect taxes + Net factor income from abroad – Net current transfers to abroad

NNDI = 11,450 + 150 + 50 – 100

∴ NNDI = Rs 11,550