Question

Complete the following aggregates.

(i) National Income = Domestic income .......................
(ii) Personal Income = Private income .......................
(iii) Net value added at FC = Gross output .......................

Class XII
National income

Answer 1

National Income (NNP_FC) = NDP_FC + Net Factor Income from Abroad
        = domestic income + NFIA
      = earnings of the residents of a country from domestic and abroad during
            one accounting year.

  Personal income = earned income and transfer income received by persons from all sources within and outside the country
     = private income – corporate profit tax – undistributed profit Personal income
 = personal disposable income + direct personal tax + miscellaneous fines and fees paid by households


  Net value added at FC (factory cost)  = Gross output  - Intermediate consumption – depreciation – net indirect tax