Q27 of 50 Page 1

Calculate net national product at a market price and private income

Net Current transfer to abroad 10


Private final consumption expenditure 500


Current transfer from government 30


Net factor income to abroad 20


Net export -20


Net indirect tax 120


National debt interest 70


Net domestic capital formation 80


Income accruing to government 60


Government final consumption expenditure 100

NNP at MP = Private final consumption expenditure + Government final consumption expenditure + Net domestic capital formation + Net export - Net factor income to abroad


NNp at MP = 500+100+80+(-20)-20


= 680-20-20


=640 Crore


Private income = NNP at MP-Net indirect tax-Income accruing to government+ Current transfer from government+National debt interest - Net Current transfer to abroad


= 640-120-60+30+70-10


= 550 CRORE


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