National Income Accounting

Question

From the following data, calculate (a) National income, and (b) Personal disposable income.

   

(र in crores)

(i)

Compensation of employees

1200

(ii)

Rent

400

(iii)

Profit

800

(iv)

Consumption of fixed capital

300

(v)

Mixed income of self-employed

1000

(vi)

Private income

3600

(vii)

Net factor income from abroad

- 50

(viii)

Net retained earnings of private enterprises

200

(ix)

Interest

250

(x)

Net indirect taxes

350

(xi)

Net exports

- 60

(xiii)

Direct taxes paid by households

150

(xiii)

Corporate tax

100

 

Answer

(a) National Income = 1200 + 400 + 800 + 1000 + (- 50) + 250 = 3600 crores
(b) Personal disposable income = Personal income - Taxes paid by households 
                                                  = 3300( = 3600 - 200 -100) -150 = 3150 crores.                                                               

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