Calculate NNP@FC and Private income - National debt interest 60
- wages & salaries 600
- net current transfers to abroad 20
- rent 200
- transfer payments by govt. 70
- interest 300
- NDP@FC accruing to govt. 400
- social security contribution by employers 100
- NFITA 50
- profits 300
What is meant by Net domestic product at factor cost accruing to govt.?
NNPFC = Wages and salary + Social security contributions by employers + Rent + Interest + Profits – Net factor income paid to abroad
= 600 + 100 + 200 + 300 + 300– 50
= 1450
Private Income = NNPFC–Net domestic product at factor cost accruing to government + National debt interest + Transfer payments by government – Net current transfers to abroad
= 1450 – 400 + 60 + 70 – 20
= 1160
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