Chapter 9: Basic concept of Macroeconomics

Important Questions

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.

Sample Questions

1. Discuss the meaning of consumption goods and capital goods?

2. What are the reasons for depreciation of assets?

3. Write the difference between depreciation and capital loss?

4. Define indirect tax and subsidies?

5. What is NFIA? Write its significance and components?