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Question
Find national income and private income:
(Rs crore)
(i) Wages and salaries 1,000
(ii) Net current transfer to abroad 20
(iii) Net factor income paid to abroad 10
(iv) Profit 400
(v) National debt interest 120
(vi) Social security contributions by employers 100
(vii) Current transfers from government 60
(viii) National income accruing to government 150
(ix) Rent 200
(x) Interest 300
(xi) Royalty 50
Solution
NNPFC = Compensation of employees + Operating surplus + Mixed income of self-employed − Net factor income paid to abroad
= Wages and salaries + Social security contributions by employers + Rent + Interest + Profit + Royalty − Net factor income paid to abroad
= 1,000 + 100 + 200 + 300 + 400 + 50 - 10 = Rs 2,040
Private income = National income - National income accruing to government - Net current transfer to abroad + National debt interest + Transfer from government
= 2040 - 150 - 20 + 120 + 60
= Rs 2050
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