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# Calculate the 'National Income' and 'Private Income' : Net Factor Income to Abroad National Debt Interest Wages and Salaries Current Transfers from Government Undistributed Profit - CBSE (Arts) Class 12 - Economics

#### Question

Calculate the 'National Income' and 'Private Income' :

 (Rs in crores) 1 Rent 200 2 Net factor income to abroad 10 3 National debt interest 15 4 Wages and salaries 700 5 Current transfers from government 10 6 Undistributed profit 20 7 Corporation tax 30 8 Interest 150 9 Social security contributions by employers 100 10 Net domestic product accruing to government 250 11 Net current transfers to rest of the world 5 12 Dividends 50

#### Solution

National Income = Wages and salaries + Social security contributions by employers + Rent + Interest + Dividends + Corporation tax + Undistributed profits - Net factor income to abroad

NNPFC = 700 + 100 + 200 + 150 + 50 + 30 + 20 − 10

= 1240 crore

Private Income = National income − Net domestic product accruing to government + Current transfer from government − Net current transfers to the rest of the world + National debt interest

= 1240 − 250 + 10 − 5 +

= 1010 crore

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#### APPEARS IN

Solution Calculate the 'National Income' and 'Private Income' : Net Factor Income to Abroad National Debt Interest Wages and Salaries Current Transfers from Government Undistributed Profit Concept: Concept of National Income.
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