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Question:

Calculate (a) National Income, and (b) Net National Disposable Income. (Rs in crores)(i) Compensation of employees 2,000(ii) Rent 400(iii) Profit 900(iv) Dividend 100(v) Interest 500(vi) Mixed income of self-employed 7,000(vii)Net factor income to abroad 50(viii)Net exports 60(ix) Net indirect taxes 300(x) Depreciation 150(xi) Net current transfers to abroad 30

Solution:

National Income orNNPFC=Compensation of Employees + Rent + Profit + Interest + Mixed income of self-employed - Net Factor Income to Abroad
NNPFC=2000+400+900+500+7000-50
NNPFC=11,350
Net National Disposable Income=NNPFC+Net Indirect Taxes - Net current transfers to abroad
Net National Disposable Income=11,350+300-30
Net National Disposable Income=11,620