Long Answer Type

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Calculate National Income and Gross National Disposable Income from the following: 
  (Rs.Crore)
(i) Net Current transfers to the rest of the world (-5)
(ii) Private final consumption expenditure                                        500
(iii) Consumption of fixed capital 20
(iv) Net factor income to abroad (-)10
(v) Government final consumption expenditure                                  200
(vi) Net indirect tax                                                                    100
(vii) Net domestic fixed capital formation                                         120
(viii) Net imports 30
(ix) Change in stocks (-) 20

 


Calculation of National Income:
NNPFC is defined as the measure of the factor earning of the resident of a country, both from economic territory and abroad. Therefore, NNPFC is equal to national income of country.
NNPFC = Private Final Consumption Expenditure + Government Final Consumption Expenditure + (Net Domestic Fixed Capital Formation + Change in Stock) - Net Imports - Net Indirect Taxes - Net Factor Income to Abroad - Consumption of Fixed Capital
= 500 + 200 + 120 + (-20) - 30 - 100 - (-10) -20
= Rs 660 crore

Calculation of Gross National Disposable Income:
GNDI = NNPFC + Consumption of Fixed Capital + Net Indirect Taxes - Net Current transfers to Rest of the World
= 660 + 20 + 100 - (-5)
= Rs 785 crore



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