calculate ndp(fc) and private income
domestic product accuring to government-300
wages and salaries-1000
net current transfers to abroad- -20
rent-100
interest-130
NDI-30
coorporatetax-50
current transfers from government-40
contribution to social security scheme by employees -200
dividend-100
undistributed profit-20
net factor income to abroad-0
NDPFC = Wages and salaries + Rent + Interest + corporate tax + dividend + undistributed profit
= 1000 + 100 + 130 + 50 + 100 + 20 = 1400
Income accruing to private sector from NDPFC = NDPFC - Domestic product accruing to government = 1400 - 300 = 1100
Private income = Income accruing to private sector from NDPFC + Net current transfers from government - Net current transfers to abroad- Net factor income to abroad = 1100 + 40 -(-20) - 0 = 1160
= 1000 + 100 + 130 + 50 + 100 + 20 = 1400
Income accruing to private sector from NDPFC = NDPFC - Domestic product accruing to government = 1400 - 300 = 1100
Private income = Income accruing to private sector from NDPFC + Net current transfers from government - Net current transfers to abroad- Net factor income to abroad = 1100 + 40 -(-20) - 0 = 1160