Distinguish between intermediate consumption and final consumption?
Whether the following items will be included in national income? Give reasons for your answer.
Bonus to employees
Purchase of books by a student
Bus fare paid by a passenger
Wages received by an Indian working in British embassy.
Free meals to beggars
Gifts to trust from china.
Expenditure incurred by normal residents on foreign travel.
Financial help to flood victims.
Are the following a part of a country’s net domestic product at market price? Explain
Net indirect taxes
Net exports
Net factor income from capital
Consumption of fixed capital
How would the following transactions affect the national income?
Particulars
Rs. in crores
Sale of an old house
10,00,000
Commission to broker on sale of old house
20,000
Purchase of shares
2,000
Interest on national debt
2,000
Salary to doctor of private hospital
25,000
Purchase of a new car by a firm
3,25,000
Payment of bonus to employees
4,000
Define externalities. Give an example of negative externality. What is its impact on welfare?
Use the following information:-
Year
2014-15
2015-16
2016-17
Nominal GDP
6.5
8.4
9
GDP Deflator
100
140
125
For which year is real GDP and nominal GDP same and why?
Calculate Real GDP for the given years. Is there any year for which Real GDP falls?
What is meant by problem of double counting? How this problem can be avoided?
Define operating surplus. State its components.
Explain mixed income of self-employed and give an example?
What is real gross domestic product?
Give the meaning of Nominal GDP and Real GDP. Which of these is the indicator of economic welfare?
If the real GDP is Rs.300 and Nominal GDP is Rs. 330 calculate price index.
Given real income to be 400 and price index be 100, calculate nominal income.
Write any two differences between GDP at constant price and GDP at current prices.
Explain the precautions that should be taken while estimating national income by value added method.
In an economy following transactions took place. Calculate the value of output and value added by Firm B.
Firm A sold to firm B goods of Rs. 80 crore; to firm C Rs. 50 crore to household Rs.30 crore and goods of value Rs.10 crore remains unsold.
Firm B sold to firm C goods of Rs. 70 crore to firm D Rs. 40 crore; goods of value Rs. 30 crore were exported and goods of value Rs. 5 crore was sold to government.
Calculate ‘value of output’ from the following data:-
Particulars
Rs. in Lakhs
Subsidy
10
Intermediate consumption
150
Depreciation
30
Goods and Services Tax
20
Net value added at factor cost
250
Net addition to stocks
−(13)
Calculate “Gross National Product at market price’’ from the following data.
Particulars
Rs. in crores
Compensation of employees
2,000
Interest
500
Rent
700
Profits
800
Employer’s contribution to social security schemes
201
Dividends
300
Consumption of fixed capital
100
Net indirect taxes
250
Net exports
70
Net factor income to abroad
150
Mixed income of self employed
1,500
Calculate Gross National Disposable Income from the following data:
Items
(Rs. in crore)
(i) National income
2,000
(ii) Net factor income from abroad
(−) 50
(iii) Consumption of fixed capital
200
(iv) Net current transfers from rest of the world
150
(v) Net indirect taxes
250
Calculate Private Income from the following data:
Items
(Rs. in crore)
(i) National debt interest
30
(ii) Gross national product at market price
400
(iii) Current transfers from government
20
(iv) Net indirect taxes
40
(v) Net current transfers from rest of the world
(−) 10
(vi) Net domestic product at factor cost accruing to government
50
(vii) Consumption of fixed capital
70
From the following about firm ‘Y’, calculate Net Value Added at Market Price by it:
Items
(Rs. in thousand)
(i) Sales
300
(ii) Depreciation
20
(iii) Net indirect taxes
30
(iv) Purchase of intermediate products
150
(v) Change in stock
(−)10
(vi) Purchase of machinery
100
Calculate GDPMP and NDPMP with the help of expenditure method from the data give below:
