Question

Calculate 'Net Domestic Product at Market Price' and 'Private Income' from the following :

	(Rs. in Arab)
(i) Income from domestic product accruing to government	120
(ii) Wages and salaries	400
(iii) National debt interest	60
(iv) Profit	200
(v) Net factor income to abroad	(-) 20
(vi) Rent	100
(vii) Current transfer from government	30
(viii) Interest	150
(ix) Social security contribution by employers	50
(x) Net indirect tax	70
(xi) Net current transfers to abroad	(-) 10

Answer 1

NDP_MP=(ii + ix) + vi + viii + iv + x

=(Wages and salaries + Social security contribution) + Rent + Interest + Profit + Net Indirect taxes

=(400+50)+100+150+200+70

=450+250+270

=Rs. 970 Arab

Private Income = NDP_MP- (x) - (i) - (v) + (iii) + (vii) - (xi).

=NDPMP - Net  Indirect Taxes - Income from domestic product accruing to government - Net factor income to abroad + National debt interest + Current transfers from Government - Net current transfers to abroad

=970-70-120-(-20)-60+30-(-10)

=970-70-120+20+60+30+10

=900-120+120

=Rs. 900 Arab