GNPMP of an economy is 1,50,000 crore and its capital stock is worth 2,00,000 crore. If the rate of depreciation is @ 20% per annum, indirect tax amounts to 30,000 crore and subsidies are 15,000 crore. What will be the amount of national income?
Answer & explanation
Correct answer: option 3
The correct answer is option 3: 95,000
National income = NNPFC
NNPFC= GNPMP - depreciation - NIT ( indirect tax - subsidies )
NNPFC = 1,50,000 - 40,000 - ( 30,000 - 15,000 )
NNPFC= 1,50,000 - 40,000 - 15,000
NNPFC = 95,000
(Depreciation = 20% of 2,00,000 = 40,000)