Calculate (a) Private Income and (b) Gross Domestic Product at Factor

Calculate (a) Private Income and (b) Gross Domestic Product at Factor Cost.(Rs. in Arab)(i) Miscellaneous receipts of government15(ii) Savings of non-departmental enterprises.8(iii) Direct taxes paid by households30(iv) Net factor income to abroad(-) 6(v) Corporation tax20(vi) Net current transfers from abroad(-) 4(vii) Savings of private corporate sector10(viii) National debt interest15(ix) Current transfers by government8(x) Income from property and entrepreneurship accruing to the government administrative departments.12(xi) Personal disposable income200(xii) Consumption of fixed capital11

Answer»

(i) Private Income

=National debt Interest + current transfers by Government.

=15+8

=Rs. 23 Arab.

(ii) GDPFC

=(i) + (ii) + (iii) + (iv) + (v) + (vi) + (vii) + (x)

=15+8+30+(-6)+20+(-4)+10+12

=Rs. 85 Arab.