Question

Find national income and private income:

Sr.No	Particle	Rs Crores
i.	Wages and Salaries	$1,000$
ii.	Net current transfers to abroad	$20$
iii.	Net factor income paid to abroad	$10$
iv.	Profit	$400$
v	National Debt Interest	$120$
vi.	Social Security contributions by employers	$100$
vii.	Current transfers from government	$60$
viii.	National Income accruing to government	$150$
ix.	Rent	$200$
x.	Interest	$300$
xi.	Royalty	$50$

Answer 1

$NN{P}_{FC}=$ Compensation of Employees $+$ Operating Surplus $+$ Mixed income of self-employed $-$ Net Factor Income paid to Abroad
$\Rightarrow NN{P}_{FC}=$ Wages and Salaries $+$ Social security contributions by employers $+$ Rent $+$ Interest $+$ Profit $+$ Royalty $-$ Net Factor Income paid to Abroad
$\therefore NN{P}_{FC}=1,000+100+200+300+400+50-10=Rs.2,040$
Private Income $=$ National Income $-$ National income accruing to government $-$ Net Current Transfers to Abroad $+$ National Debt Interest $+$ Transfers from Government
$\Rightarrow$ Private Income $=2,040-150-20+120+60$
$\therefore$ Private Income $=Rs2,050$.