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, Raju 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 Raju’s contribution to the following measures of income (a) Gross Domestic Product (b) NNP at market price (c) NNP at factor cost (d) Personal income (e) Personal disposable income.
Rs 500
Rs 450
Rs 420
Rs 200
Rs 180
Explanation
This question tests the relationship between different measures of national income. GDP at market price is the total value of output. NNP is derived by deducting depreciation. NNP at factor cost removes indirect taxes. Personal Income excludes retained earnings from National Income. Personal Disposable Income is what remains after personal taxes.