From the following data, calculate Perso | Class 12 Macro Economics Chapter National Income Accounting, National Income Accounting NCERT Solutions

Question:

From the following data, calculate Personal Income and Personal Disposable Income.
Rs (crore)
(a) Net Domestic Product at factor cost 8,000
(b) Net Factor Income from abroad 200
(c) Undisbursed Profit 1,000
(d) Corporate Tax 500
(e) Interest Received by Households 1,500
(f) Interest Paid by Households 1,200
(g) Transfer Income 300
(h) Personal Tax 500

Answer:

Personal Income = NDPFC + Net factor income from abroad (NFIA) + Transfer Income – Undistributed profit – Corporate tax – Net interest paid by households

NDPFC = Rs.8000 crores
NFIA = Rs.200 crores
Transfer Income = Rs.300 crores
Undistributed profit = Rs.1,000 crores
Corporate tax = Rs.500 crores
Net interest paid by households = Interest paid - Interest received

= 1200 - 1500
= (-) Rs.300 crores

So, putting the values in the above formula
PI = 8000 + 200 + 300 - 1000 - 500 - (- 300)
= 8000 + 200 + 300 - 1000 - 500 + 300
⇒ PI = 7300

So, Personal Income = Rs.7300 crores

Personal Disposable income = Personal Income - Personal Payment

= 7300 - 500
= Rs. 6800 crores

1
0
0
Report?

Report a problem on Specifications:

Email id:

Comments

< Previous Question

Next Question >

Popular questions of class 12 Macro Economics

Differentiate between devaluation and depreciation.

What is a barter system? What are its drawbacks?

Write down some of the limitations of using GDP as an index of welfare of a country.

Explain the relation between government deficit and government debt.

Why should the aggregate final expenditure of an economy be equal to the aggregate factor payments? Explain.

Give the relationship between the revenue deficit and the fiscal deficit.

Discuss the issue of deficit reduction.

What is the difference between ex ante investment and ex post investment?

Explain ‘Paradox of Thrift’.

Suppose C = 40 + 0.8Y D, T = 50, I = 60, G = 40, X = 90, M = 50 + 0.05Y

(a) Find equilibrium income. (b) Find the net export balance at equilibrium income (c) What happens to equilibrium income and the net export balance when the government purchases increase from 40 and 50?

Recently Viewed Questions of Class 12 Macro Economics

Differentiate between balance of trade and current account balance.

Explain the relation between government deficit and government debt.

Does public debt impose a burden? Explain.

Give the relationship between the revenue deficit and the fiscal deficit.

Suppose marginal propensity to consume is 0.75 and there is a 20 per cent proportional income tax. Find the change in equilibrium income for the following (a) Government purchases increase by 20 (b) Transfers decrease by 20.

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.

Describe the Great Depression of 1929.

Discuss the issue of deficit reduction.

What do you understand by ‘parametric shift of a line’? How does a line shift when its (i) slope decreases, and (ii) its intercept increases?

Explain why the tax multiplier is smaller in absolute value than the government expenditure multiplier.

Study Tips for Answering NCERT Questions:

NCERT questions are designed to test your understanding of the concepts and theories discussed in the chapter. Here are some tips to help you answer NCERT questions effectively:

Read the question carefully and focus on the core concept being asked.
Reference examples and data from the chapter when answering questions about National Income Accounting.
Review previous year question papers to get an idea of how such questions may be framed in exams.
Practice answering questions within the time limit to improve your speed and accuracy.
Discuss your answers with your teachers or peers to get feedback and improve your understanding.

Comments

Comment(s) on this Question

Welcome to the NCERT Solutions for Class 12 Macro Economics - Chapter . This page offers a step-by-step solution to the specific question from Excercise 1 , Question 9: From the following data, calculate Personal Income and Personal Disposable Income. &n....

From the following data, calculate Perso | Class 12 Macro Economics Chapter National Income Accounting, National Income Accounting NCERT Solutions

< Previous Question

Next Question >

Popular questions of class 12 Macro Economics

Recently Viewed Questions of Class 12 Macro Economics

Study Tips for Answering NCERT Questions:

Comments

Comment(s) on this Question

Chapters for Class 12 Macro Economics

Subjects for Class 12

Students Also Read

Important links

Quick Links

Resources

Support