Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Calculate NDPFC

Rent 1,500
Royalty 300
Interest 1,200
Wages and salaries 800
Profit 600
Mixed income 1,000
Employer's contribution to social security scheme  70
Depreciation 200

 

Options:

5230

5470

6320

3510

Correct Answer:

5470

Explanation:

NDPFC = Compensation of employees + Operating surplus + Mixed income

NDPFC = (Wages and salaries + Employer's contribution to SSS ) + ( Rent + Royalty + Interest + Profit ) + Mixed income

= (800 + 70) + (1500 + 300 + 1200 + 600) + 1000

= 5470