If for a hypothetical economy, the Net National Product at Factor cost is Rs 3580 crore, Net Indirect Taxes are Rs 35 crore and Net Current Transfers from the Rest of the World are Rs 240 crore, then what will be the value of National Disposable Income?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs 3855 crore
Given:
-
NNP at Factor Cost (National Income) = ₹3,580 crore
-
Net Indirect Taxes = ₹35 crore
-
Net Current Transfers from Rest of the World = ₹240 crore
National Disposable Income (NDI) = NNP at Market Price + Net Current Transfers from Rest of the World
NNP at Market Price = NNP at Factor Cost + Net Indirect Taxes = 3,580 + 35 = 3,615 crore
NDI = 3,615 + 240 = 3,855 crore