Question

Calculate 'Net National Product at Market Price' and 'Gross National Disposable Income' from the following:

		(Rs in Arab)
1	Closing stocks	10
2	Consumption of fixed capital	40
3	Private final consumption expenditure	600
4	Exports	50
5	Opening Stock	20
6	Government final consumption expenditure	100
7	Imports	60
8	Net domestic fixed capital formation	80
9	Net current transfers to abroad	(-)10
10	Net factor income to abroad	30

Answer 1

NNP_MP =Private final consumption expenditure+ Government final consumption expenditure + (Net domestic fixed capital formation + Consumption of fixed capital)+ (Closing Stock - Opening Stock)+ (Exports - Imports) - Consumption of fixed capital - Net factor income to abroad

= 600 + 100 + 80 + 40 + (10 - 20) + (50 - 60) - 40 – 30

= Rs 730 arab

Gross National Disposable Income = NNP_MP - Net current transfers to abroad+ Consumption of fixed capital

= 730 - (-10) + 40

= Rs 780 arab