Question
Calculate (a) national income (b) net national income disposable income:
| (Rs. in crores) | ||
| 1 | Net factor income to abroad | (-) 50 |
| 2 | Net indirect taxes | 800 |
| 3 | Net current transfers from rest of the word | 100 |
| 4 | Net imports | 200 |
| 5 | Private final consumption expenditure | 5000 |
| 6 | Government final consumption expenditure | 3000 |
| 7 | Gross domestic capital formation | 1000 |
| 8 | Consumption of fixed capital | 150 |
| 9 | Change in stock | (-) 50 |
| 10 | Mixed income | 4000 |
| 11 | Scholarship to students | 80 |
Solution
NNPFc = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Gross Domestic Capital Formation + Change in Stock - Net Imports - Depreciation - Net Factor Income to Abroad - Net Indirect Taxes
NNPFc = 5000 + 3000 + 1000 - 50 - 200 -150 - (-50) - 800
NNFFc = 7850
Net National Disposable Income = NNPFc + Net Indirect Taxes + Net current transfers from the rest of the world
Net National Disposable Income = 7850 + 800 +100 = 8750
Is there an error in this question or solution?
Solution Calculate (A) National Income (B) Net National Income Disposable Income: Net Factor Income to Abroad Net Indirect Taxes Net Current Transfers from Rest of the Word Concept: Gross and Net Domestic Product (GDP and NDP).
