Question

Calculate 'Net Domestic Product at Market Price' and 'Private Income' from the following :

| | (Rs. in **)** |
| (i) Income from domestic product accruing to government | 120 |
| (ii) Wages and salaries | 400 |
| (iii) National debt interest | 60 |
| (iv) Profit | 200 |
| (v) Net factor income to abroad | (-) 20 |
| (vi) Rent | 100 |
| (vii) Current transfer from government | 30 |
| (viii) Interest | 150 |
| (ix) Social security contribution by employers | 50 |
| (x) Net indirect tax | 70 |
| (xi) Net current transfers to abroad | (-) 10 |

Answer 1

NDPMP=(ii + ix) + vi + viii + iv + x

=(Wages and salaries + Social security contribution) + Rent + Interest + Profit + Net Indirect taxes

=(400+50)+100+150+200+70

=450+250+270

=Rs. 970 ****

Private Income = NDPMP- (x) - (i) - (v) + (iii) + (vii) - (xi).

=NDPMP - Net Indirect Taxes - Income from domestic product accruing to government - Net factor income to abroad + National debt interest + Current transfers from Government - Net current transfers to abroad

=970-70-120-(-20)-60+30-(-10)

=970-70-120+20+60+30+10

=900-120+120

=Rs. 900 ****