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Question
Calculate 'Net National Product at Market Price' and 'Personal Income'.
| (Rs crore) | ||
| (i) | Transfer payments by government | 7 |
| (ii) | Government final consumption expenditure | 50 |
| (iii) | Net imports | -10 |
| (iv) | Net domestic fixed capital formation | 60 |
| (v) | Private final consumption expenditure | 300 |
| (vi) | Private income | 280 |
| (vii) | Net factor income to abroad | -5 |
| (viii) | Closing stock | 8 |
| (ix) | Opening stock | 8 |
| (x) | Depreciation | 12 |
| (xi) | Corporate tax | 60 |
| Xii | Retained earnings of corporatio | 20 |
Solution
Net National Product at Market = Private final consumption expenditure + Government final consumption expenditure + (Net domestic fixed capital formation + depreciation) + Change in stock − Net imports − Depreciation − Net factor income to an abroad − Net national product at market price
= 300 + 50 + 60 + 12 + (8 − 8) − (−10) − 12 − (−5)
= Rs 425 crore
Personal Income = Private income − Corporate tax − Retained earnings of corpor
= 280 − 60 − 20
= Rs 200 crore
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