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प्रश्न
Explain the precautions that should be taken while estimating national income by expenditure method.
State any two precautions that are taken while estimating National Income by Expenditure Method.
उत्तर
Precautions were taken while estimating national by expenditure method
- Expenditure on intermediate goods will not be included in the national income as it already included in the value of final expenditure. It if it is included again by mistake, it will lead to double counting of expenditures.
- Transfer payments are not included because such payments are not related to any productive activity and there is no value addition.
- Purchase of second-hand goods will not be included because such expenditures have already been included when they were originally purchased. Those goods do not affect the current flow of goods and services. Hence any commission on those goods is included as it is a payment made for productive service.
- Purchase and financial assets will not be included because those transactions do not contribute to the current flow of goods and services.
- Expenditure on own account production such self-consumption and imputed value of owner-occupied houses will be included in the estimation of national income since these are productive services.
APPEARS IN
संबंधित प्रश्न
Giving reason explain how should the following be treated in the estimation of national income:
Purchase of refrigerator by a firm for own use
Calculate national income and gross national disposable income from the following:
| (Rs Arab) | ||
| 1 | Net current transfers to abroad | 5 |
| 2 | Government final consumption expenditure | 100 |
| 3 | Net indirect tax | 80 |
| 4 | Private final consumption expenditure | 300 |
| 5 | Consumption of fixed capital | 20 |
| 6 | Gross domestic fixed capital formation | 50 |
| 7 | Net imports | (-)10 |
| 8 | Closing stock | 25 |
| 9 | Opening stock | 25 |
| 10 | Net factor income to abroad | 10 |
How should the following be treated while estimating national income? You must give the reason in support of your answer.
Addition to stocks during a year
C = 50 + 0.5 Y is the Consumption Function where C is consumption expenditure and Y is National Income and Investment expenditure is 2000 is an economy. Calculate
(i) Equilibrium level of National Income.
(ii) Consumption expenditure at equilibrium level of national income.
Give reasons or explain the following statements:
The net national income is less than gross national income.
State whether the following statements are True or False with reason:
Ten years period is considered for measuring National Income.
State with reason whether you agree or disagree with the following statement:
Gross National product and Gross Domestic product are same concepts.
Give reason or explain the following statement:
Paid services are included in national income.
Fill in the blank with appropriate alternatives given below
GDP (FC) = GDP (MP) – __________
Define the following:
Income from property and entrepreneurship
PASSAGE
Corona has slowed down the economy Lockdown imposed to contain the spread of Corona virus had resulted in closure of manufacturing and business activities. During this financial year, the economy is expected to move towards a contractionary phase rather than expansionary phase. This has been stated in the budget. This is the first paperless budget in the history of India. At the same time, it is the third post-independence budget to be presented at a time when the economy is shrinking. The budget shows a fiscal deficit of more than 5%.
The Union Finance Minister has presented a budget that seeks to accelerate the economy by balancing the impact of Corona on the economy on one hand and growing expectations of all sectors on the other. A significant increase in the allocation for Healthcare by 137% is a feature of this budget. In this budget, the expected revenue for the year 212-2022 is Rs. 34,35, 000crore and the expected expenditure is Rs. 35,83, 000 crore.
Attempts have been made to boost infrastructure, education, agricultural production, employment generation and industry, but the Income tax status quo has remained the same. The budget provides Rs.16.5 lakh crore for agricultural credit, Rs. 223,000 crore for health facilities, Rs. 3 lakh crore for Power Distribution Scheme, Rs. 15,700 crore for Small and Medium Enterprises and Rs. 20,000 crore for Government Bank Capital.
- What is the percentage increase in the provision for Healthcare? (1 mark)
- Mention the sectors that have been promoted in this budget. (1 mark)
- Express your personal opinion based on the above information regarding the budget ( 2 marks)
Net National product at factor cost is also known as
Per capita income is obtained by dividing the National income by the ______.
NNP stands for______.
Define GDP deflator.
Nominal GNP is same as ____________.
Consider the following statements and identify the right ones.
- Personal income refers to the income of individuals of a country.
- The income at their disposal after paying direct taxes is called disposable income.
Which of the following is not a component of domestic income?
How should the following be treated in estimating National Income of a Country? Give valid reasons.
Profit earned by Foreign Banks in India.
