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# Calculate Net National Product at Market Price and Gross National Disposable Income: - CBSE (Arts) Class 12 - Economics

ConceptAggregates Related to National Income - Net National Product (NNP)

#### Question

Calculate Net National Product at Market Price and Gross National Disposable Income:

 (Rs crores) 1 Net factor income to abroad (-)10 2 Net current transfers to abroad 5 3 Consumption of fixed capital 40 4 Compensation of employees 700 5 Corporate tax 30 6 Undistributed profits 10 7 Interest 90 8 Rent 100 9 Dividends 20 10 Net indirect tax 110 11 Social security contributions by employees 11

#### Solution

Net National Product at Market Prices = Compensation of employees + Rent + Interest + Dividends + Corporate tax + Undistributed profits − Net factor income to abroad + Net indirect taxes

= 700 + 100 + 90 + 20 + 30 + 10 −(−10) + 110

= Rs 1070 crore

Gross National Disposable Income = Net national product at market prices − Net current transfers to abroad + Consumption of fixed capital

= 1070 − 5 + 40

= Rs 1105 crore

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Solution Calculate Net National Product at Market Price and Gross National Disposable Income: Concept: Aggregates Related to National Income - Net National Product (NNP).
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