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Calculate the Gross National Product at Market Price and Personal Income : - Economics

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Calculate the Gross National Product at Market Price and Personal Income :

    (Rs crores)
(i) Wages and salaries 800
(ii) Personal tax 150
(iii) Operating surplus 200
(iv) Undistributed profits 10
(v) Social security contributions by employers 100
(vi) Corporate tax 50
(vii) Net factor income to abroad (−) 20
(viii) Personal disposable income 1,200
(ix) Net indirect tax 70
(x) Consumption of fixed capital 30
(xi) Mixed income of self-employed 500
(xii) Royalty 9
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Solution

Gross National Product at Market Price = Wages and salaries + Social security contribution by employers +  Operating surplus + Mixed income of self employed + Depreciation - Net Factor Income to Abroad + Net Indirect taxes
Gross National Product at Market Price = 800 + 100 + 200 + 500 + 30 - (-20) + 70
Gross National Product at Market Price = Rs 1,720 crore

Personal Income = Personal disposable income + Personal tax
Personal Income = 1200 + 150
Personal Income =  Rs 1,350 crore

Concept: Aggregates Related to National Income - Personal Income
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