Question

Calculate (a) net national product at market price and (b) ***** national disposable income :

| | | Rs. in crores |
| (i) | ***** domestic fixed capital formation | 400 |
| (ii) | Private final consumption expenditure | 8,000 |
| (iii) | Government final consumption expenditure | 3,000 |
| (iv) | Change in stock | 50 |
| (v) | Consumption of fixed capital | 40 |
| (vi) | Net indirect taxes | 100 |
| (vii) | Net exports | (-)60 |
| (viii) | Net factor income to abroad | (-)80 |
| (ix) | Net current transfers from abroad | 100 |
| (x) | Dividend | 100 |

Answer 1

(a) NNPMP = Private Final Consumption Expenditure + Government final consumption expenditure + ***** domestic fixed capital formation + Change in Stock + Net Exports + Net Indirect Thxes - Consumption of Fixed Capital - Net factor income to abroad

= 8,000 + 3,000 + 400 + 50 + 100 + (-60)-40-(-80)

=Rs.11,530 crores

(b) ***** National Disposable Income = NNPMP+Net current transfers from abroad + Consumption of Fixed Capital

= 11,530 + 100 + 40

= Rs.11,670 crores