​Net Indirect Taxes are included in _________.

Correct option is D

The correct answer is (d) National Disposable Income

Explanation:

• Net Indirect Taxes (NIT) = Indirect Taxes – Subsidies.
• These are included in the calculation of National Income (NNP at factor cost to NNP at market price).
• When we calculate National Disposable Income, we add Net Indirect Taxes to the Net National Product (NNP) at factor cost, making it part of National Income at market price and finally leading to National Disposable Income after adjusting for current transfers.

Information Booster:

• National Disposable Income (NDI) is the total income available to the nation for spending or saving.

                     $$\text{NDI} = \text{NNP at FC} + \text{Net Indirect Taxes} + \text{Net Current Transfers from rest of the world}$$​​

• Net Indirect Taxes are a macroeconomic concept and are not a part of personal income or disposable income directly.

Additional Knowledge:

• Personal Taxes: Includes income tax, property tax, etc. → Deducted from personal income.
• Personal Disposable Income = Personal Income – Personal Taxes
  (Does not include net indirect taxes)
• Net Current Transfers: Transfers such as foreign remittances, grants, gifts → Used while calculating NDI from Net National Income.