Calculate (a) GNP mp (b) Personal Disposable Income from the following

1.	Calculate (a) GNP mp (b) Personal Disposable Income from the following data:(i) Net factor income to abroad10(ii) Private Income1700(iii)Operating surplus 300 (iv)Corporation Tax150(v)Undistributed profit30(vi)Mixed Income500(vii)consumption of fixed capital 100 (viii) Personal taxes200(ix) Compensation of employees 1200 (x) Net indirect tax 250
Answer» NDPfc = COE + OS + MI = 1200 + 300 + 500 = 2000 GNPmp = NDPfc + dep + NIT + NFIA = 2000 + 100 + 250 + (-10) GNPmp = 2340 PDI = Private income – corporate tax – undistributed profit – personal tax = 1700 – 150 – 30 – 200 PDI = 1320

Calculate (a) GNP mp (b) Personal Disposable Income from the following data:(i) Net factor income to abroad10(ii) Private Income1700(iii)Operating surplus 300 (iv)Corporation Tax150(v)Undistributed profit30(vi)Mixed Income500(vii)consumption of fixed capital 100 (viii) Personal taxes200(ix) Compensation of employees 1200 (x) Net indirect tax 250

Answer»

NDPfc = COE + OS + MI

= 1200 + 300 + 500

= 2000

GNPmp = NDPfc + dep + NIT + NFIA

= 2000 + 100 + 250 + (-10)

GNPmp = 2340

PDI = Private income – corporate tax – undistributed profit – personal tax

= 1700 – 150 – 30 – 200

PDI = 1320

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