Question

Q.4 Calculate Domestic income if :

Particulars
GDP at MP is 70150

Indirect Taxes is 5200

Factor income from abroad is 800

consumption of fixed capital is 3100

Factor income to abroad is 300

Subsidies is 4000​

Answer 1

Answer:

(a) Domestic Income or NDP at FC = GDP at MP - Consumption of Fixed Capital  - Indirect Taxes +Subsidies

                                                                = 70150 - 3100 - 5200 + 4000 = 65850

( b) National Income or NNP at FC = NDP at FC - Factor income to abroad + Factor income from abroad

                                                          = 65850 - 300 + 800

                                                           = 66350.