Find Gross Domestic Product at Factor Cost and Personal Disposable Income - Economics

Find Gross Domestic Product at Factor Cost and Personal Disposable Income

 (Rs crore) (i) Personal tax 100 (ii) Net National Disposable Income 800 (iii) Corporation tax 50 (iv) Net factor income of abroad (-)10 (v) Retained income 200 (vi) Indirect tax 170 (vii) Privet income 600 (viii) Subsidy 30 (ix) Consumption of fixed capital 60 (x) Net current transfer from abroad 10

Solution

GDPFC = Net national disposable income − Net current transfers from abroad − Net indirect taxes − Net current transfers from abroad − Net factor income to abroad + Consumption of fixed capital

= 800 − (170 − 30) − 10 + (−10) + 60

= Rs 700 crore

Personal Disposable Income = Private income − Corporation tax − Personal tax − Retained income

= 600 − 50 −100 − 200

= Rs 250 crore

Concept: Aggregates Related to National Income - Personal Disposable Income
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2015-2016 (March) Foreign Set 2

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