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National Income Accounting

Question
CBSEENEC12013423
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Calculate National Income and Personal Disposable Income:

    (Rs.crores)
(i) Personal tax 80
(ii) Private final consumption expenditure 600
(iii)  Undistributed profits 30
(iv) Private income 650
(v) Government final consumption expenditure 100
(vi) Corporate tax 50
(vii) Net domestic fixed capital formation 70
(viii) Net indirect tax 60
(ix) Depreciation 14
(x) Change in stocks (-) 10
(xi) Net imports 20
(xii) Net factor income to abroad 10

Solution

Computation of National Income:
National Income = Private final consumption expenditure + Government final consumption
expenditure + (Net domestic fixed capital formation + depreciation + change in stock) -
net imports - depreciation - Net Indirect Taxes - Net factor income to abroad
National income = 600 + 100 + (70 + 14 - 10) - 20 - 14 - 60 – 10
or National income = Rs 670 crore
Computation of Disposable income:
Personal Disposable Income = Private income - Undistributed profits - Corporation tax –Personal tax
or, Personal Disposable Income = 650 - 30 - 50 – 80
or, Personal Disposable Income = Rs 490 crore

 

Some More Questions From National Income Accounting Chapter

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Briefly explain the following basic concepts related to NI:
Consumption Goods and Capital Goods

Briefly explain the following basic concepts related to NI:
Flow and Stock Concepts

Briefly explain the following basic concepts related to NI:
Gross Investment and Net Investment

Briefly explain the following basic concepts related to NI:
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Briefly explain the following basic concepts related to NI:
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Briefly explain the following basic concepts related to NI:
National Income at Current and Constant Prices (Nominal and Real NI).

Briefly explain the following basic concepts related to NI:
Consumption of Fixed Capital (Depreciation).

Briefly explain the following basic concepts related to NI:
Factor Cost vs. Market Price (or Net Indirect Taxes)

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