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:
(i) Gross Domestic Product
(ii) NNP at market price
(iii) NNP at factor cost
(iv) Personal income
(v) Personal Disposable Income
Given, Indirect taxes = Rs. 30,Personal tax = Rs 20,
Depreciation = Rs.50, Retained earnings = Rs. 220
(i) :. GD${{P}{MP}}$ = Rs. 500
(ii) NN${{P}{MP}}$ =
GD${{P}{MP}}$ - Depreciation = 500 - 50 = Rs. 450
(iii) NN${{P}{FC}}$ =
NN${{P}{MP}}$ - NIT = 450 - 30 = Rs 420
(iv) Personal Income = NN${{P}{FC}}$ - Retained Earning
= 420 - 220 = Rs. 200
(v) Personal Disposable Income = Personal Income - Direct Tax
= 200 -20 = Rs. 180