Question

find net national products at market price net current transfers from abroad-10, wages and salaries 1000, net factor income to abroad-20 , social security contributions by owners 100, net indirect tax80 , rent 300 , depreciation 120, corporation tax 50 , dividend 200, undisturbed profits 60 ,interest400​

Answer 1

Explanation:

NNP

FC

= Compensation of Employees + Operating Surplus + Mixed income of self-employed − Net Factor Income paid to Abroad

⇒NNP

FC

= Wages and Salaries + Social security contributions by employers + Rent + Interest + Profit + Royalty − Net Factor Income paid to Abroad

∴NNP

FC

=1,000+100+200+300+400+50−10=Rs.2,040

Private Income = National Income − National income accruing to government − Net Current Transfers to Abroad + National Debt Interest + Transfers from Government

⇒ Private Income =2,040−150−20+120+60

∴ Private Income =Rs2,050.