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Question
Calculate 'National Income' and 'Gross National Disposable Income' from the following:
| (Rs in Arab) | ||
| 1 | Net imports | 60 |
| 2 | Net current transfers to abroad | (-)10 |
| 3 | Net domestic fixed capital formation | 300 |
| 4 | Government final consumption expenditure | 200 |
| 5 | Private final consumption expenditure | 700 |
| 6 | Consumption of fixed capital | 70 |
| 7 | Net change in stocks | 30 |
| 8 | Net factor income to abroad | 20 |
| 9 | Net indirect tax | 100 |
Solution
NNPFC = Private final consumption expenditure + Government final consumption expenditure + Net domestic fixed capital formation + Net change in stocks − Net imports − Net indirect tax − Net factor income to abroad
= 700 + 200 + 300 + 30 − 60 − 100 − 20
= 1050 arab
Net National Disposable Income (NNDI) = NNPFC + NIT − Net current transfers to abroad
= 1050 + 100 − (−10)
= 1160 arab
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RELATED QUESTIONS
Find Gross National Product at Market Price and Private Income:
| Rs. in crore | ||
| 1 | Private final consumption expenditure | 800 |
| 2 | Net Current transaction to abroad | 20 |
| 3 | Net factor income to abroad | (-)10 |
| 4 | Government final consumption expenditure | 300 |
| 5 | Net indirect tax | 150 |
| 6 | Net domestic capital formation | 200 |
| 7 | Current transfer to government | 40 |
| 8 | Depreciation | 100 |
| 9 | Net imports | 30 |
| 10 | Income accruing to government | 90 |
| 11 | National debt interest | 50 |
Calculate “Gross National Product at Market Price” from the following data:
|
S.No. |
Particulars |
(Rs in crores) |
|
|
(i) |
Compensation of employees |
2,000 |
|
|
(ii) |
Interest |
500 |
|
|
(iii) |
Rent |
700 |
|
|
(iv) |
Profits |
800 |
|
|
(v) |
Employer’s contribution to social security schemes |
200 |
|
|
(vi) |
Dividends |
300 |
|
|
(vii) |
Consumption of fixed capital |
100 |
|
|
(viii) |
Net indirect taxes |
250 |
|
|
(ix) |
Net exports |
70 |
|
|
(x) |
Net factor income to abroad |
150 |
|
|
(xi) |
Mixed income of self-employed |
1,500 |
|
GNP(fc) = GNP(mp) - ______.
What is real national income?
Identify the correctly matched items in Column A to that of Column B:
| Column A | Column B |
| 1. Social Welfare | (a) Total of economic and non-economic welfare |
| 2. Comparison of GDP of different countries | (b) GDPs evaluated at current market prices |
| 3. Economic welfare | (c) Situation of unemployment |
| 4. GDP deflator | (d) Includes prices of imported goods |
Factor Cost is the ______
The study of National Income is related to:
Identify the correctly matched pair of items in Column A to those in Column B:
| Column A | Column B | ||
| 1 | Markets in the Economy | (a) | Producers only |
| 2 | National Income | (b) | Macroeconomics |
| 3 | Total Cost | (c) | Both Micro and Macroeconomics |
| 4 | Net National Product | (d) | Microeconomics |
National Income is the sum of factor incomes accruing to:
Assertion (A): There is no restriction on the entry and exit of the firms in the perfectly competitive market.
Reason (R): The perfect competition market is characterised by the sellers being price takers and not price makers.
On the basis of the data given below for an imaginary economy, estimate the Gross National Product at Market price (GNPMP):
| S.NO | Items | Amount (₹ in crore) |
| (i) | Household Consumption Expenditure | 2,000 |
| (ii) | Government Final Consumption Expenditure | 1,000 |
| (iii) | Gross Fixed Capital Formation | 1,100 |
| (iv) | Net additions to Stock | 200 |
| (v) | Exports | 600 |
| (vi) | Net factor income from abroad | 150 |
| (vii) | Imports | 400 |
State whether the following items will be included in the estimation of National Income or not? Give a reason for your answer.
Fresh tomatoes used by a food processing company.
