Calculate national income from the following: | ||
(Rs. Arab) | ||
(i) | Net current transfers to abroad | (-) 15 |
(ii) | Private final consumption expenditure | 600 |
(iii) | Subsidies | 20 |
(iv) | Government final consumption of fixed capital | 100 |
(v) | Indirect tax | 120 |
(vi) | Net imports | 20 |
(vii) | Consumption of fixed capital | 35 |
(viii) | Net change in stocks | (-) 10 |
(ix) | Net factor income to abroad | 5 |
(x) | Net domestic capital formation | 110 |
Answer:
National Income = Private Final Consumption Expenditure + Government Final Consumption Expenditure Net Imports + (Net Domestic Capital Formation + Depreciation) - Depreciation - (Indirect Taxes - Subsidies) - Net Factor Income to Abroad or, National Income (\[NN{{P}_{FC}}\]) \[=600+100+(-20)+(110+35)35-(120-20)-5=Rs.\text{ }685\text{ }Arab.\]
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