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Question
Calculate the (a) Gross National Product at market price, and (b) Net National Disposable Income
| (Rs In crores) | |
| (i) Compensation of employee | 2,500 |
| (ii) Profit | 700 |
| (iii) Mixed income of self- employed | 7,500 |
| (iv) Government final consumption expenditure | 3,00 |
| (v) Rent | 400 |
| (vi) Interest | 350 |
| (vii) Net factor income from abroad | 50 |
| (viii) Net current transfer to abroad | 100 |
| (ix) Net indirect taxes | 150 |
| (x) Depreciation | 70 |
| (xi) Net export | 40 |
Solution
NDP= Compensation of employees + Rent + Interest + Profit + Mixed income of self
employed
NDPFC = 2,500 + 400 + 350 + 700 +7,500
∴ NDPFC = Rs 11,450
GNPMP = NDPFC + Depreciation + Net factor income from abroad + Net indirect taxes
GNPMP = 11,450 + 70 + 50 + 150
∴ GNPMP = Rs 11,720
Net National Disposable Income (NNDI) = NDPFC + Net indirect taxes + Net factor income from abroad – Net current transfers to abroad
NNDI = 11,450 + 150 + 50 – 100
∴ NNDI = Rs 11,550
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