Calculate National Income Net Domestic Capital Formation ₹ 110 Private Final Consumption Expenditure ₹ 600
Calculate National Income.
| Particulars | ₹ in Arab |
| (i) Net Domestic Capital Formation | 110 |
| (ii) Private Final Consumption Expenditure | 600 |
| (iii) Subsidies | 20 |
| (iv) Government Final Consumption Expenditure | 100 |
| (v) Indirect tax | 120 |
| (vi) Net imports | 20 |
| (vii) Consumption of fixed capital | 35 |
| (viii) Net Change in Stocks | (-) 10 |
| (ix) Net factor income to abroad | 5 |
Ans.
National Income = ₹ 685 Arab
Anurag Pathak Changed status to publish December 21, 2023
Solution:-
Calculation of National Income
NDP at MP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Net Domestic Capital Formation – Net imports
NDP at MP = ₹ 600 + ₹ 100 + ₹ 110 – ₹ 20
NDP at MP = ₹ 790
NNP at FC = NDP at MP – Net factor income to abroad – Net indirect tax (Indirect tax – Subsidies)
NNP at FC = ₹ 790 – ₹ 5 – (₹ 120 – ₹ 20)
NNP at FC = ₹ 685 Arab
Anurag Pathak Changed status to publish November 7, 2023
