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

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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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