Find National Income and Personal Disposable Income - Economics


Find National Income and Personal Disposable Income:

    (Rs crore)
(i) Undistributed profits 70
(ii) Gross National Disposable Income 1,000
(iii) Net current transfers to abroad 20
(iv) Consumption of fixed capital 100
(v) Corporation tax 200
(vi) Indirect tax 250
(vii) Current transfers from government 50
(viii) Subsidies 60
(ix) Private income 800
(x) Personal tax 150




Gross National Disposable Income = GNPMP+ Net Current Transfers from abroad (or - Net Current Transfers to abroad) or, 1,000 = GNPMP- 20 = 1020

= GNPMP- Depredation - (Indirect Taxes - Subsidies)

= 1020 -100 - (250 - 60) = 730

= Rs 730 crore

Personal Disposable Income = Private Income - Undistributed Profits (or Retained Earnings) - Corporation Tax - Personal Tax Personal Disposable Income

= 800 - 70 - 200 -150

= Rs 380 crore

Concept: Aggregates Related to National Income - Personal Disposable Income
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2015-2016 (March) Foreign Set 3


Calculate National Income and Personal Disposable Income:

    (Rs crore)
(i) Corporate tax 100
(ii) Private final consumption expenditure 900
(iii) Personal Income tax 120
(iv) Government final consumption expenditure 200
(v) Undistributed profits 50
(vi) Change in stocks (-)20
(vii) Net domestic fixed capital formation 120
(viii) Net imports 10
(ix) Net indirect tax 150
(x) Net factor income from abroad (-)10
(xi) Private income 1000

Find national product at market price and personal disposable income:

    (Rs crore)
(i) Personal taxes 200
(ii) Wages and salaries 1200
(iii) Rent 50
(iv) Undistributed profit 300
(v) Corporate tax 200
(vi) Private income 2000
(vii) Interest 400
(viii) Net indirect tax 300
(ix) Net factor income to abroad 20
(x) Profit 500
(xi) Social security contribution by employers 250

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

Calculate National Income and Gross National Disposable Income from the following: 

S. No.


(Rs crore)


Net current transfers to the rest of the world

(–) 5


Private final consumption expenditure



Consumption of fixed capital



Net factor income to abroad

(–) 10


Government final consumption expenditure



Net indirect tax



Net domestic fixed capital formation



Net imports



Change in stocks

(–) 20


From the following data, calculate Personal Income and Personal Disposable Income.


Rs (crore)


Net Domestic Product at factor cost



Net Factor Income from abroad



Undisbursed Profit



Corporate Tax



Interest Received by Households



Interest Paid by Households



Transfer Income



Personal Tax


In a single day Raju, the barber, collects Rs 500 from haircuts; over this day, his equipment depreciates in value by Rs 50. Of the remaining Rs 450, Raju pays sales tax worth Rs 30, takes home Rs 200 and retains Rs 220 for improvement and buying of new equipment. He further pays Rs 20 as income tax from his income. Based on this information, complete Raju’s contribution to the following measures of income (a) Gross Domestic Product (b) NNP at market price (c) NNP at factor cost (d) Personal income (e) Personal disposable income.


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