Q9 of 12 Page 30

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


Personal Income (PI) = NDPFC+ Net factor income from abroad (NFIA) + Transfer Income - Undistributed profit - corporate tax - Net interest paid by households

NDPFC= Rs.8000 crores


NFIA = Rs.200 crores


Transfer Income = Rs.300 crores


Undistributed profit = Rs. 1,000 crores


Corporate tax = Rs.500 crores


Net interest paid by households = Interest paid - Interest received


= 1200 – 1500


= (-) Rs.300 crores


PI = 8000 + 200 + 300 - 1000 - 500 - (- 300)


= 8000 + 200 + 300 - 1000 - 500 + 300


PI = 7300


Personal Disposable income = Personal Income - Personal Payments


= 7300 – 500


= Rs.6800 crores


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7

Suppose the GDP at market price of a country in a particular year was Rs 1,100 crores. Net Factor Income from Abroad was Rs 100 crores. The value of Indirect taxes – Subsidies was Rs 150 crores and National Income was Rs 850 crores. Calculate the aggregate value of depreciation.

 8

Net National Product at Factor Cost of a particular country in a year is Rs 1,900 crores. There are no interest payments made by the households to the firms/government, or by the firms/government to the households. The Personal Disposable Income of the households is Rs 1,200 crores. The personal income taxes paid by them is Rs 600 crores and the value of retained earnings of the firms and government is valued at Rs 200 crores. What is the value of transfer payments made by the government and firms to the households?

 10

In a single day Raju, 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.

 11

The value of the nominal GNP of an economy was Rs 2,500 crores in a particular year. The value of GNP of that country during the same year, evaluated at the prices of same base year, was Rs 3,000 crores. Calculate the value of the GNP deflator of the year in percentage terms. Has the price level risen between the base year and the year under consideration?