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Sales 1900 Purchase 600. Closing stock 210. Opening stock 350. Expenditure 100. Production for self consumption 240. Indirect taxes 140. Direct tax 120. NFIA 50. Subsidies 80. Depreciation 100 find national income?
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Sales 1900 Purchase 600. Closing stock 210. Opening stock 350. Expendi...
- **Calculation of National Income**
- **Gross Domestic Product (GDP)**
The GDP can be calculated using the formula:
GDP = Sales + Closing stock - Opening stock
Substitute the given values:
GDP = 1900 + 210 - 350
GDP = 1760
- **Net Domestic Product at Factor Cost (NDPFC)**
NDPFC can be calculated by subtracting Depreciation from GDP:
NDPFC = GDP - Depreciation
NDPFC = 1760 - 100
NDPFC = 1660
- **Net National Product at Factor Cost (NNPFC)**
NNPFC is calculated by subtracting Indirect taxes from NDPFC and adding Subsidies:
NNPFC = NDPFC - Indirect taxes + Subsidies
NNPFC = 1660 - 140 + 80
NNPFC = 1600
- **National Income (NI)**
NI is calculated by adding NFIA (Net Factor Income from Abroad) to NNPFC and subtracting Direct taxes:
NI = NNPFC + NFIA - Direct tax
NI = 1600 + 50 - 120
NI = 1530
Therefore, the National Income in this scenario is 1530.
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Sales 1900 Purchase 600. Closing stock 210. Opening stock 350. Expenditure 100. Production for self consumption 240. Indirect taxes 140. Direct tax 120. NFIA 50. Subsidies 80. Depreciation 100 find national income?
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