Question

Find Gross Domestic Product at Factor Cost and Personal Disposable Income

		(Rs crore)
(i)	Personal tax	100
(ii)	Net National Disposable Income	800
(iii)	Corporation tax	50
(iv)	Net factor income of abroad	(-)10
(v)	Retained income	200
(vi)	Indirect tax	170
(vii)	Privet income	600
(viii)	Subsidy	30
(ix)	Consumption of fixed capital	60
(x)	Net current transfer from abroad	10

Answer 1

GDP_FC = Net national disposable income − Net current transfers from abroad − Net indirect taxes − Net current transfers from abroad − Net factor income to abroad + Consumption of fixed capital

= 800 − (170 − 30) − 10 + (−10) + 60

= Rs 700 crore

Personal Disposable Income = Private income − Corporation tax − Personal tax − Retained income

= 600 − 50 −100 − 200

= Rs 250 crore