question_answer

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 (\[NN{{P}_{FC}}\]) \[=600+100+(-20)+(110+35)35-(120-20)-5=Rs.\text{ }685\text{ }Arab.\]