Question

GDP at market prices R397bn
Net primary income payments to the rest of
the world
R37bn
Indirect taxes R23bn
Subsidies R11bn
Consumption of fixed capital R32bn
1 Calculate the value of gross national income (GNI) at market prices.
2 Calculate the value of net national product (NNI) at market prices.
3. Calculate the value of net national income (NNI) at factor cost.

Answer 1

a) Gross National Income (GNI) = GDP + Net payments to the world + Taxes - Subsidies - Consumption of fixed assets

= R (397 $+$ 37 $+$ 23 $-$ 11 $-$ 32) bn

= R 414bn

b) Net National Product(NNI) at Market Prices.

=GDP _fc − Consumption of fixed capital − Net Primary income payments to the rest of the world.

=[(397$+$ 32) $-$ 32$-$ 37]

=R 360bn

c) NNI at Factor cost =NNI at Market Price +Subsidies $-$ Indirect taxes

=(360+11$-$23 )

=R 348bn