Question

Find out (a) Net National Product at Market Price and (b) Gross National Disposable Income from the following :

	(Rs. in crore)
(i) Undistributed Profits	20
(ii) Compensation of Employees	800
(iii) Rent	300
(iv) Dividend	100
(v) Royalty	40
(vi) Net Current Transfers to Abroad	(-) 30
(vii) Corporation Tax	50
(viii) Interest	400
(ix) Depreciation	70
(x) Net Factor Income from Abroad	(-) 10
(xi) Net Indirect Tax	60

Answer 1

(i) NNP_MP

=(ii) + (iii) + (v) + (viii) + [iv+(vii)+ i] + (x) + (xi)

=800+300+40+400+[100+50+20]+(-10)+60

=Rs.1,760 crore

(ii) GNDI

= GNP_MP - Net Current Transfer to Abroad

=(1,760+70)-(-30)

=Rs.1,860 crore

[Note : Profit = Dividend + Corporation Tax + Undishibuted Profit]