Question

    Calculate Domestic Income:

    Items

    Rs in crore

    Compensation of employees

    2000

    Rent and interest

    800

    Indirect taxes

    120

    Corporation Tax

    460

    Consumption of fixed capital

    100

    Subsidies

    20

    Dividend

    940

    Undistributed profits

    300

    Net factor income to abroad

    150

    Mixed income

    200

    A 4000 Correct Answer Incorrect Answer
    B 4700 Correct Answer Incorrect Answer
    C 5000 Correct Answer Incorrect Answer
    D 6000 Correct Answer Incorrect Answer
    E 4900 Correct Answer Incorrect Answer

    Solution

    Profit=Dividend + Corporation Tax + Undistributed profits = 940 + 460 + 300 = 1700

    Operating Surplus = Rent + Interest + Profit = 800 + 1700 = 2500

    Domestic Income = NDP at fc = Compensation of employees + Mixed income + Operating Surplus

    = 2000 + 200 + 2500 = 4700

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