Question

Calculate 'Net National Product at Market Price' and '***** National Disposable Income' from the following :

| Items | (Rs. in **)** |
| (i) Closing stock | 10 |
| (ii) Consumption of fixed capital | 40 |
| (iii) Private final consumption expenditure | 600 |
| (iv) Exports | 50 |
| (v) Opening Stock | 20 |
| (vi) Government final consumption expenditure | 100 |
| (vii) Imports | 60 |
| (viii) Net domestic fixed capital formation | 80 |
| (ix) Net current transfers to abroad | (-) 10 |
| (x) Net factor income to abroad | 30 |

Answer 1

(i) Net National Product at Market Price (NNPMMP)

=Private final consumption expenditure + Government final consumption expenditure + Net domestic fixed capital formation + Change in stock (Closing stock-opening stock) + Net Exports (Exports-Imports) - Net factor income to abroad

=600+100+80+(10-20)+50-60-30

=780-50

=Rs. 730 ****

(ii) ***** National Disposable Income (GNDI)

=NNPMP+Consumption of fixed capital -Net current transfers to abroad

=730+40-(-10)

=Rs. 780 ****.