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Calculate National Income and Gross National Disposable Income from the Following: Net Current Transfers to Abroad Government Final Consumption Expenditure Net Indirect Tax Private Final Consumption Expenditure - CBSE (Arts) Class 12 - Economics

Question

Calculate national income and gross national disposable income from the following:

 (Rs Arab) 1 Net current transfers to abroad 5 2 Government final consumption expenditure 100 3 Net indirect tax 80 4 Private final consumption expenditure 300 5 Consumption of fixed capital 20 6 Gross domestic fixed capital formation 50 7 Net imports (-)10 8 Closing stock 25 9 Opening stock 25 10 Net factor income to abroad 10

Solution

National domestic income at factor cost = Private final consumption expenditure + Government final consumption expenditure − Net imports + (Gross domestic fixed capital formation + Closing stock − Opening stock) − Depreciation − Net indirect taxes

National income (NDPFC) = = 300 + 100 − (−10) + (50 +25 − 25) − 20 − 80 = Rs 360 arab

Net national disposable income = = NDPFC − Net factor income to abroad + Net indirect taxes + Net current transfers from ROW

Net national disposable income = 360 − 10 + 80 + (−5) = Rs 425 arab

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Solution Calculate National Income and Gross National Disposable Income from the Following: Net Current Transfers to Abroad Government Final Consumption Expenditure Net Indirect Tax Private Final Consumption Expenditure Concept: Concept of National Income.
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