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National Income Accounting

Question
CBSEENEC12013536
Wired Faculty App

Find out (a) national income and (b) net national disposable income:
S.No. Items (Rs crores)
(i) Factor income from abroad 15
(ii) Private final consumption expenditure 600
(iii) Consumption of fixed captial 50
(iv) Government final consumption expenditure 200
(v) Net current transfers to abroad (-)5
(vi) Net domestic fixed capital formation 110
(vii) Net factor income to abroad 10
(viii) Net imports (-)20
(ix) Net indirect tax 70
(x) Change in stocks (-)10

Solution

(a)
NDPMP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Net Domestic Fixed Capital Formation + Change in Stock - Net Imports
= 600 + 200 + 110 + (-10) - (-20)
= Rs 920 Cr.
NNPFC = NDPMP+ NFIA -Net Indirect Taxes
= 920 + (-10) - 70
= Rs 840 Cr.

(b)
Net National Disposable Income
= NDPMP + NFIA - Net Current Transfers to Abroad
= 920 + (-10) - (-5) Cr.
= Rs 915 Cr.

Some More Questions From National Income Accounting Chapter

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:
Domestic (Economic) Territory

Briefly explain the following basic concepts related to NI:
Normal Residents

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)

Briefly explain the following basic concepts related to NI:
Net Factor Income from Abroad (NFIA)

Briefly explain the following basic concepts related to NI:
Value of Output vs. Value Added

Briefly explain the following basic concepts related to NI:
Factor Payment (Income) vs. Transfer Payment (Income)

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