Basic Concepts of Macroeconomics-Important Questions

IMPORTANT QUESTIONS

CHAPTER 12: Basic Concepts of Macroeconomics

1. Give the meaning of factor income?
2. Distinguish between factor income and transfer receipt?
3. Who are referred to as ‘normal residents’? Who all are not included under the category of normal residents?
4. Define the following:
1. Factor income
2. Transfer income
3. Domestic territory
4. Gross investment
5. Net investment
6. Depreciation
7. Net indirect tax
5. Distinguish between intermediate products and final products. Give examples.
6. Discuss the meaning of consumption goods and capital goods?
7. What are the reasons for depreciation of assets?
8. Write the difference between depreciation and capital loss?
9. Define indirect tax and subsidies?
10. What is NFIA? Write its significance and components?
11. Classify the following as final goods or intermediate goods.
1. Machine purchased by a firm
2. Car purchased by a household
3. Sewing machine purchased by a housewife
4. Electricity consumption in a business
5. Seeds purchased for kitchen gardening
12. Identify the missing items in the following flowchart:-

1. Depreciation
2. Net Indirect Taxes
3. Indirect Taxes
4. Net Factor Income from Abroad