Question

Calculate (a) National Income, and (b) Net National Disposable Income:

	(Rs In crores)
(i) Compensation of employees	2,000
(ii) Rent	400
(iii) Profit	900
(iv) Dividend	100
(v) Interest	500
(vi) Mixed income of self- employed	7,000
(vii) Net factor income to abroad	50
(viii) Net export	60
(ix) Net indirect taxes	300
(x) Depreciation	150
(xi) Net current transfers to aboard	30

Answer 1

National Income = Compensation of employees + Rent + Interest + Profit + Mixed income of self employed - Net factor income to abroad

National Income = 2,000 + 400 + 500 + 900 +7,000 – 50

∴National Income = Rs 10,750

Net National Disposable Income = National income + Net indirect taxes – Net current transfers to abroad

Net National Disposable Income = 10,750 + 300 – 30

∴Net National Disposable Income = Rs 11,020