Question

2. Calculate GNPMP from Factor Payment and Income Disposal Method : Rs. 1,700
S. No. Items (Rs. in crores) 1. Mixed income of Self-employed 400
2. Compensation of Employees 500
3. Private final consumption expenditure 900
4. Net factor income from abroad (-)20
5. NIT 100
6. Replacement cost 120
7. Net domestic capital formation 280
8. Net Exports (-)30
9. Profit 350
10. Rent 100
11. Interest 150
12. Govt. final consumption expenditure 450

Answer 1

Answer:

National Income or NNP

FC

= Compensation of Employees + Rent + Profit + Interest + Mixed income of self-employed - Net Factor Income to Abroad

NNP

FC

=2000+400+900+500+7000−50

NNP

FC

=10,750

Net National Disposable Income =NNP

FC

+ Net Indirect Taxes - Net current transfers to abroad Net National Disposable Income =10,750+300−30=11,020

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