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Question -

In a single day Raju, the barber, collects Rs 500 from haircuts; over this day, his equipment depreciates in value by Rs 50. Of the remaining Rs 450,



Answer -

┬аRaju pays sales tax worth Rs 30, takes home Rs 200 and retains Rs 220 for improvement and buying of new equipment. He further pays Rs 20 as income tax from his income. Based on this information, complete RajuтАЩs contribution to the following measures of income

Gross Domestic Product
NNP at market price
┬аNNP at factor cost
┬аPersonal income
Personal disposable income.

Answer

  1. ┬аGDP contribution by Raju = Rs 500
  2. ┬аNNPMP (RajuтАЩs contribution) = GDP тАУ Depreciation = 500 тАУ 50 = Rs 450.
  3. ┬аNNPrr (RajuтАЩs contribution) = NNPMP -Indirect tax =450-30 = Rs 420
  4. ┬аPersonal Income = NNPFC-Retained Earnings = 420 тАУ 220 = Rs 200
  5. ┬аPersonal Disposable Income = Personal Income тАУ Income Tax = 200 тАУ 20 = Rs 180 Crore

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