Question

Calculate Gross National Disposable Income from the following data:

(i) Net Domestic Product at factor cost	3000
(ii) Indirect Tax	300
(iii) Net current transfer from abroad	250
(iv) Current transfer from govt.	100
(v) Net factor income to abroad	150
(vi) Consumption of fixed capital	200
(vii) Subsidies	100

Answer 1

GNP mp = NDPfc + Depreciation + NIT + NFIA

= 3000 + 200 + (300 -100) + ( - 150)

= 3000 + 400 -150 

= 3250 

GNDI = GNPmp + Net Current transfer from abroad

= 3250 +250 

GNDI = 3500