Answer to Question #129122 in Macroeconomics for Sarthak

Question

From the following information calculate national income and domestic income.(5)
Items. Amount
I. Wages. 10000
II. Rent. 5000
III. Interest. 400
IV. Dividend. 3000
V. Mixed income. 400
VI. Undistributed profit. 200
VII. Social security contribution. 400
VIII. Corporate profit tax. 400
IX. N.F.I.A. 1000

Answer 1

Domestic Income = (Wages + Rent + Interest + Dividend + Mixed income + Undistributed profit + Social security contribution + Corporate profit tax)

Domestic income = (10000 + 5000 + 400 + 3000 + 400 + 200 + 400 + 400) = 19800

Domestic income = 19800

National income = Domestic income + N. F. I. A

National income = (19800 + 1000) = 20800

National Income = 20800