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National Income Accounting

Question
CBSEENEC12013614

Find Gross National Product at Market Price and Private Income:  (Rs in crore)
(i) Private final consumption expenditure                                      800
(ii) Net Current transaction to abroad                                            20
(iii) Net factor income to abroad                                                  (-) 10
(iv) Government final consumption expenditure                             300
(v) Net indirect tax                                                                     150
(vi) Net domestic capital formation                                              200
(vii) Current transfer to government                                            40
(viii) Depreciation                                                                      100
(ix) Net imports                                                                         30
(x) Income accruing to government                                            90
(xi) National debt interest                                                           50

Solution
GDP subscript MP space equals space Private space Final space Consumption space expenditure space plus space Government space Final space Consumption space Expenditure plus left parenthesis Net space domestic space capital space formation plus space depreciation right parenthesis minus Net space imports
space space space space space space space space space space space space equals 800 plus 300 plus left parenthesis 200 plus 100 right parenthesis minus 30 space equals space 1.370
space space space space space space space space space space space space equals Rs space 1.370 space crore
GNP subscript MP space equals space GDP subscript MP minus Net space factor space income space to space abroad
space space space space space space space space space space space equals 1 comma 370 minus left parenthesis negative 10 right parenthesis equals 1380
           = Rs, 1380 crore.
Private Income = GDPMP - Net indirect taxes - Depreciation - Income accruing to government - Net factor income to abroad + Current transfers from Government - Net Current transfers to abroad + National debt interest. 
 = 1370 - 150 - 100 - 90- (-10)+ 40 -20 + 50 = Rs 1,110 crore.