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From the following data calculate personal income and personal disposable income.(a)Net domestic product at factor cost8,000(b)Net factor income from abroad200(C)Undisbursed profit1,000(d)Corporate tax500(e)Interest received by households1,500(f)Interest paid by households1,200(g)Transfer income300(h)Personal tax500 |
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Answer» Personal income = Net domestic product at factor cost + Net factor income from abroad + (Interest received by households – Interest paid by households) + Transfer income – Corporate tax – Undisbursed profit. Therefore, – PI = 8000 + 200 + (1500 – 1200) + 300 – 500 -1000 = 8000 + 200 + 300+300-500-1000 = 7300 Personal Disposable Income = Personal Income – Personal Tax Therefore PDI = 7300 – 500 = 6800. |
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