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Question : 5
Total: 5
Calculate net domestic product at factor cost and (net national disposable income **) from the following : (₹ Arab)
(i) Net current transfers to abroad | 5 |
(ii) Government final consumption expenditure | 100 |
(iii) Net indirect tax | 80 |
(iv) Private final consumption expenditure | 300 |
(v) Consumption of fixed capital | 20 |
(vi) Gross domestic fixed capital formation | 50 |
(vii) Net imports | (-)10 |
(viii) Closing stock | 25 |
(ix) Opening stock | 25 |
(x) Net factor income to abroad | 10 |
Solution:
National Domestic Income at Factor Cost = Private Final Consumption Expenditure + Government Final Consumption Expenditure - Net Imports + (Gross Domestic Fixed Capital Formation + Closing stock - Opening stock) - Depreciation - Net Indirect Taxes or,
National Income( N D P F C ) = 300 + 100 − ( − 10 ) + ( 50 + 25 − 25 ) − 20 − 80 = ₹ 360 Arab.
National Income
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