Question

Find national product at market price and personal disposable income:

		(Rs crore)
(i)	Personal taxes	200
(ii)	Wages and salaries	1200
(iii)	Rent	50
(iv)	Undistributed profit	300
(v)	Corporate tax	200
(vi)	Private income	2000
(vii)	Interest	400
(viii)	Net indirect tax	300
(ix)	Net factor income to abroad	20
(x)	Profit	500
(xi)	Social security contribution by employers	250

Answer 1

NDP_FC = Wages and Salaries + Social security contribution by employers + Rent + Interest + Profit

=1200 + 300 + 400 + 500 + 250

= Rs 2650 crores

NNP_MP=NDP_FC - Net factor income to abroad + Net indirect tax

=2650 - 20 + 300 NNP_MP

= Rs 2930 crores

Personal disposable income = Private income - Corporate tax - Undistributed profit - Personal taxes

= 2000 - 200 - 50 - 200

= Rs 1550 crore