Question

Calculate National Income and Private Income. 

(i) Rent	200
(ii) Net Factor Income to abroad	10
(iii) National Debt Interest	5
(iv) Wages & Salaries	700
(v) Current Transfer from government	10
(vi) Undistributed profits	20
(ix) Social security contributions by employers	100
(x) NDP accruing to government	250
(xi) Net current transfer to ROW	5
(xii) Dividends	50

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Answer 1

NNPfc = (iv + ix) + ( i + viii + vii + vi + xii) – ii

= 700 + 100 + 200 + 150 + 20 + 30 + 50 – 10

NNPfc = 1240 Cr.

NDPfc = NNPfc – NFIA

= 1240 – (-10) = 1250 

Private sectors income = NDPfc – x 

= 1250 – 250 = 1000

Private Income = Private sector’s income + iii- xi + v 

1000 + 5 – 5 + 10

Private income = 1010.