Calculate Net Domestic Product at Factor cost and Net National Disposable Income from the following:
Calculate Net Domestic Product at Factor cost and Net National Disposable Income from the following:
| (Rs. in Arab) | |
| (i) Net current transfers to abroad | 5 |
| (ii) Government final consumption expenditure | 100 |
| (iii) Net indirect tax | 80 |
| (iv) Private final consumption expenditure | 300 |
| (v) Consumption of fixed capital | 20 |
| (vi) Gross domestic fixed capital formation | 50 |
| (vii) Net imports | (-) 10 |
| (viii) Closing stock | 25 |
| (ix) Opening stock | 25 |
| (x) Net factor income to abroad | 10 |
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(i) Net Domestic Product at Factor Cost (NDPFC)
=Privat final consumption expenditure + Govemment final consumption expenditure + Gross domestic fixed capital formation + charge stock (closing stock-opening stock)-Net Import - Net Indirect tax - Consumption of fixed capital
=300 + 100 + 50 + (25 - 25) - (- 10) - 80 - 20
=460-100
=Rs. 360 Arab
(ii) Net National Disposalle Income (NNDI)
=(NDPFC + Net Indirect tax - Net Factor Incorne to Abroad - Net current transfers to Abroad
=360+80-10-5
=Rs. 425 Arab
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