In a single day, Raju, the barber, collects $R s . 500$ from haircuts; over this day, his equipment depreciates in value by $R s . 50$ . Of the remaining $R s .450$ , Raju pays indirect tax worth $R s . 30$ , takes home $R s .200$ and retains $R s . 220$ for improvement and buying of new equipment. He further pays $R s . 20$ as income tax from his income. Based on this information, complete Raju's contribution to the following measures of income (a) Gross Domestic Product (b) $N N P$ at market price (c) $N N P$ at factor cost.

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Solution

(a) Gross Domestic Product: Rs 500
(b) NNP at market price : Rs 500 - depreciation = Rs 500 - Rs 50 = Rs 450
(c) NNP at factor cost: NNP (at market price) - Net indirect tax = Rs 450 - Rs 30 = Rs 420.

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In a single day Raju, the barber, collects Rs 500 from haircuts; over this day, his equipment depreciates in value by Rs 50. Of the remaining Rs 450, Raju pays sales tax worth Rs 30, takes home Rs 200 and retains Rs 220 for improvement and buying of new equipment. He further pays Rs 20 as income tax from his income. Based on this information, complete Raju’s contribution to the following measures of income (a) Gross Domestic Product (b) NNP at market price (c) NNP at factor cost (d) Personal income (e) Personal disposable income.

In a single day Raju, the barber, collects Rs. 500 from haircuts; over this day, his equipment depreciates in value by Rs. 50. Of the remaining Rs. 450, Raju pays sales tax worth Rs. 30, takes home Rs. 200 and retains Rs. 220 for improvement and buying of new equipment. He further pays Rs. 20 as income tax from his income. Based on this information, complete Raju's contribution to the following measures of income:

(a) Gross Domestic Product

(b) NNP at Market Price

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