Calculate (A) National Income, and (B) Net National Disposable Income: - Economics

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Short Note

Calculate (a) national income, and (b) net national disposable income: 

    (Rs in crores)
(i) Compensation of employees 2,000
(ii) Profit 800
(iii) Rent 300
(iv) Interest 250
(v) Mixed-income of self-employed 7,000
(vi) Net current transfers to abroad 200
(vii) Net exports (-) 100
(viii) Net indirect taxes 1,500
(ix) Net factor income to abroad 60
(x) Consumption of fixed capital 120
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Solution

National Income or NNPFC = Compensation of Employees + Rent + Profit + Interest + Mixed income of self-employed – Net Factor Income to Abroad
NNPFC = 2000 + 300 + 800 + 250 + 7000 – 60
NNPFC = 10,290
 
Net National Disposable Income = NNPFC + Net Indirect Taxes – Net current transfers to abroad
Net National Disposable Income = 10,290 + 1,500 – 200 = 11,590.

Concept: Aggregates Related to National Income - Net National Product (NNP)
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