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Find National Income and Private Income - CBSE (Arts) Class 12 - Economics

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Question

Find national income and private income:

                                                                                                            (Rs crore)

(i) Wages and salaries                                                                               1,000

(ii) Net current transfer to abroad                                                                   20

(iii) Net factor income paid to abroad                                                              10

(iv) Profit                                                                                                    400

(v) National debt interest                                                                              120

(vi) Social security contributions by employers                                               100

(vii) Current transfers from government                                                         60

(viii) National income accruing to government                                                150

(ix) Rent                                                                                                     200

(x) Interest                                                                                                 300

(xi) Royalty                                                                                                  50

Solution

NNPFC = Compensation of employees + Operating surplus + Mixed income of self-employed − Net factor income paid to abroad

          = Wages and salaries + Social security contributions by employers + Rent + Interest + Profit + Royalty − Net factor income paid to abroad

          = 1,000 + 100 + 200 + 300 + 400 + 50 - 10 = Rs 2,040

Private income = National income - National income accruing to government - Net current transfer to abroad + National debt interest + Transfer from government

                      = 2040 - 150 - 20 + 120 + 60

                      = Rs 2050

 

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Solution Find National Income and Private Income Concept: Concept of National Income.
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