(a) A hypothetical national income data for a country in particular year is presented below:...
(a) A hypothetical national income data for a country in particular year is presented below:
| ITEM | $MILLION |
| Wages and salaries | 250 |
| Income paid abroad | 75 |
| Income from self-employment | 120 |
| Stock appreciation | 5 |
| Interest | 10 |
| Income received from abroad | 50 |
| Rent | 25 |
| Depreciation allowance | 3 |
| Royalties | 2 |
| Profits and dividends | 35 |
From the data, answer the following questions.
Calculate the: Gross Domestic Product (GDP)
(b) A hypothetical national income data for a country in particular year is presented below:
| ITEM | $MILLION |
| Wages and salaries | 250 |
| Income paid abroad | 75 |
| Income from self-employment | 120 |
| Stock appreciation | 5 |
| Interest | 10 |
| Income received from abroad | 50 |
| Rent | 25 |
| Depreciation allowance | 3 |
| Royalties | 2 |
| Profits and dividends | 35 |
From the data, answer the following questions.
Calculate the: Gross National Product (GNP)
(c) A hypothetical national income data for a country in particular year is presented below:
| ITEM | $MILLION |
| Wages and salaries | 250 |
| Income paid abroad | 75 |
| Income from self employment | 120 |
| Stock appreciation | 5 |
| Interest | 10 |
| Income received from abroad | 50 |
| Rent | 25 |
| Depreciation allowance | 3 |
| Royalties | 2 |
| Profits and dividends | 35 |
From the data, answer the following questions.
Calculate the: Net National Product (NNP)
Explanation
(a) GDP = Wages and salaries + Income from self employment + Rent + Interest + Royalties + Profit & dividend
= 250 + 120 + 25 + 10 + 2 + 35
= 442
(b) GNP = GDP + Net factor income
= 442 + ( 50 - 75)
= 442 - 25
= 417
(c) NNP = GNP - Depreciation
NNP = 417 - 3
NNP = 414