Calculate Net National Product

CBSE Class 12 CBSE Class 12 Economics
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Calculate (a) Net National Product at Factor Cost and (b) Gross National Disposable Income from the follo wing data:

Calculate (a) Net National Product at Factor Cost and (b) Gross National Disposable Income from the folio wing.png528×543 78.2 KB

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(a) Income accruing to Private Sector = Personal Disposable Income + Personal Tax + Retained Earnings of Private Corporate Sector +
Corporation Tax - National Debt Interest

  • Current Transfers Payments by Government
  • Net Current Transfers from Rest of the World + Net National Income to Abroad
    = 1000 + 90 + 10 + 30 - 20 - 40-(- 10)+(-10)
    = Rs 1070 crore
    ND${{P}{FC}}$ = Income accruing to Private Sector + Saving of Non-departmental Enterprises + Income from Property and Entrepreneurship accruing to the Government Administrative Departments = 1070 + 50 + 70 = Rs.1190 crore
    NN${{P}    {FC}}$ =
    ND${{P}{FC}}$ - Net National Income to Abroad = 1190 - (-10) = Rs. 1200 crore
    (b) Now, Gross National Disposable Income = NN${{P}    {FC}}$ + Net Indirect Tax
  • Net Current Transfers from Rest of the World + Consumption of Fixed Capital
    = 1200 + 80 + (-10) + 60 = Rs .1330 crores