Q29 of 50 Page 1

Calculate national income and personal disposable income:

Corporation tax 100


Private final consumption expenditure 900


Personal income tax 120


Government final consumption expenditure 200


undistributed profits 50


Change in stocks -20


Net domestic fixed capital formation 120


Net imports 10


Net indirect tax 150


Net factor income from abroad -10


Private income 1000

National income = Private final consumption expenditure+Government final consumption expenditure+Change in stocks + Net domestic fixed capital formation - Net imports -


Net indirect tax +Net factor income from abroad


= 900+200+120-20-10-150+(-10)


= 1030 Crore


Personal disposable income = Private income-Private final consumption expenditure-UNdistrubuted profits-Personal incoem tax


= 1000-100-50-120


=Rs 730 crore


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