In a single day Suraj, the barber, collects Rs 500 from haircuts; over this day, his equipment depreciates in value by Rs 50. Of the remaining Rs 450, Raju pays sales tax worth Rs 30, takes home Rs 200 and retains Rs 220 for improvement and buying of new equipment. He further pays Rs 20 as income tax from his income. Based on this information, complete Raju’s contribution to the following measures of income (a) Gross Domestic Product (b) NNP at market price (c) NNP at factor cost (d) Personal income (e) Personal disposable income.

Distinguish between domestic and national product. When can domestic product be greater than the national product?

Explain the impact of rise in exchange rate on national income.

From the following data, calculate Personal Income and Personal Disposable Income. Rs (crore)

(a) Net Domestic Product at factor cost - 8,000

(b) Net Factor Income from abroad - 200

(c) Undisbursed Profit - 1,000

(d) Corporate Tax - 500

(e) Interest Received by Households - 1,500

(f) Interest Paid by Households - 1,200

(g) Transfer Income - 300

(h) Personal Tax – 500

Calculate Net Disposable Income and personal disposable income from the foll data.