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प्रश्न
Explain in detail ‘saving function’ with schedule and diagram.
उत्तर
Meaning:- The saving function is also called as propensity to save. The saving function is the counterpart (matching part) of the consumption function. The amount of saving at any level of income is equal to the difference between the income and consumption expenditure.
It can be expressed as follows:-
S = Y – C
The relationship between income and saving is shown in the diagram.
In the above diagram, ‘SS’ curve is the saving curve, which is the counterpoint of consumption curve ‘CC’.
At ‘ON’ level of income, consumption equals income at point ‘B’ and the savings is zero. When income is lower than ‘ON’, consumption is greater than income and there isdis-saving because consumption is done through borrowing. So saving curve ‘SS’ is below ‘OX’ –axis. When income is greater than ‘ON’, the consumption is lower than income and there is savings. So, saving curve ‘SS’ is above OX-axis.the propensity to save depends on the level of income. The relationship between savings and income is direct and positive.
Normally, higher the income, higher would be the saving. Therefore, saving is the function of income. It can be expressed as follows:-
S=f (Y)
Saving Schedule:-
The relationship between income and saving can be shown in the following schedule.
Saving Schedule (Rs. Crore)
| Income (Y) | Consumption (C) | Savings (S) |
| 10000 | 13000 | -3000 |
| 15000 | 15000 | Zero |
| 20000 | 17000 | 3000 |
| 25000 | 19000 | 6000 |
| 30000 | 21000 | 9000 |
From the above schedule, it is clear that there is direct and positive relationship between income and saving. As the income increases, savings also increase depending upon the consumption expenditure.
APPEARS IN
संबंधित प्रश्न
National income
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Total Cost and Total Revenue.
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Explain the various methods of measuring national income.
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(i) Equilibrium level of National Income.
(ii) Consumption expenditure at equilibrium level of national income.
Explain the precautions that should be taken while estimating national income by expenditure method.
Calculate the (a) Net National product as markets price. and (b) Gross National Disposable Income:
| (Rs In crores) | |
| (i) Mixed income of self – employed | 8,000 |
| (ii) Rent | 400 |
| (iii) Profit | 900 |
| (iv) Dividend | 100 |
| (v) Interest | 500 |
| (vi) Mixed income of self- employed | 7,000 |
| (vii) Net factor income to abroad | 50 |
| (viii) Net export | 60 |
| (ix) Net indirect taxes | 300 |
| (x) Depreciation | 150 |
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Giving reason explain how should the following be treated in the estimation of national income:
Payment of corporate tax by a firm
Giving reason explain how should the following be treated in the estimation of national income:
Purchase of refrigerator by a firm for own use
Giving reason explain how the following should be treated in the estimation of national income:
Payment of interest by a firm to a bank
Calculate the 'National Income' and 'Private Income' :
| (Rs in crores) | ||
| 1 | Rent | 200 |
| 2 | Net factor income to abroad | 10 |
| 3 | National debt interest | 15 |
| 4 | Wages and salaries | 700 |
| 5 | Current transfers from government | 10 |
| 6 | Undistributed profit | 20 |
| 7 | Corporation tax | 30 |
| 8 | Interest | 150 |
| 9 | Social security contributions by employers | 100 |
| 10 | Net domestic product accruing to government | 250 |
| 11 | Net current transfers to rest of the world | 5 |
| 12 | Dividends | 50 |
Calculate 'Net National Product at Market Price' and 'Personal Income'.
| (Rs crore) | ||
| (i) | Transfer payments by government | 7 |
| (ii) | Government final consumption expenditure | 50 |
| (iii) | Net imports | -10 |
| (iv) | Net domestic fixed capital formation | 60 |
| (v) | Private final consumption expenditure | 300 |
| (vi) | Private income | 280 |
| (vii) | Net factor income to abroad | -5 |
| (viii) | Closing stock | 8 |
| (ix) | Opening stock | 8 |
| (x) | Depreciation | 12 |
| (xi) | Corporate tax | 60 |
| Xii | Retained earnings of corporatio | 20 |
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 |
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Taking care of aged parents
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(1) Equilibrium level of National Income
(2) Consumption expenditure at equilibrium level of National Income.
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(ii) Consumption expenditure at equilibrium level of national income.
Write explanatory answer:
Explain the output method of measuring national income.
Define or explain the following concept.
Disposable income.
Distinguish between.
Personal income and National Income.
State whether the following statement is true or false.
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Paid services are included in national income.
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Personal Income - Direct Tax = ________________
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Answer the following question:
What is double counting of national income?
Answer the following question:
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State with reason whether you agree or disagree with the following statement:
Many precautions are to be taken while estimating national income by income method.
Answer in detail:
Explain the Output method of measuring National income.
Answer in detail:
Explain the 'Final Good Approach' to avoid double counting of goods and services in the estimation of national income.
Distinguish between:
Gross national product and Gross domestic product.
Distinguish between:
Net national product and Net domestic product.
Distinguish between:
Output method of measuring national income and Income method of measuring national income.
Distinguish between:
Gross National Product and Net National Product
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National income at market prices and national income at factor cost
Write short note on:
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Final goods
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National income
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Personal income
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Depreciation
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Income from second hand sale of goods is excluded from national income.
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National income at factor cost includes subsidy.
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National income estimates are accurate in India.
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Old age pension is transfer income.
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Paid services are included in national income.
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State whether the following statement is true or false.
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State whether the following statement is true or false.
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State whether the following statement is true or false.
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Fill in the blank with appropriate alternatives given below
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Fill in the blank with appropriate alternatives given below
GDP (FC) = GDP (MP) – __________
Fill in the blank with appropriate alternatives given below
Paper purchased by a publisher is __________.
Distinguish between the following.
Personal income and Disposable income
Identify and explain the following concept:
Shobha collected data regarding the money value of all final goods and services produced in the country for the financial year 2018-2019.
Find the odd word
Concepts of national income -
Complete the following statement.
NNP is obtained by ______.
Study the following table, figure, passage and answer the question given below it.
| Components of GNP for the year 2018 |
In crores |
| Consumption | 200 |
| Investment | 300 |
| Govt.Expenditure | 400 |
| Net export | - 100 |
| Net receipts | - 50 |
| Depreciation | 100 |
A. Complete the formula
GNP = C + `square` + G + (X - M) + `square` (1m)
B. Calculate Gross National Product & Net National Product from the above data. (3m)
- Explain the concept of product (real flow) with the help of above diagram. (2m)
- Explain the concept of Money flow with the help of above diagram. (2m)
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)
Which is the largest figure?
GNP =______ + Net factor income from abroad.
GNP =______ + Net factor income from abroad.
NNP stands for______.
The value of NNP at production point is called______.
Write the formula for calculating GNP.
What is the difference between NNP and NDP?
Trace the relationship between GNP and NNP.
Differentiate between personal and disposable income.
Real GNP is same as ______.
GDPFC = ____________.
NNPFC =
Which of the following items are excluded from GNP measurement?
Net National Income at Factor Cost is called?
Which of the following is correct?
The market value of all final goods and services produced in an economy over a year is called:
Total national income divided by total population is known as:
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Identify and explain the following concept.
Shobha collected data regarding the money value of all final goods and services produced in the country for the financial year 2019-20.
How should the following be treated in estimating National Income of a Country? Give valid reasons.
Expenditure on upgradation of fixed asset by a firm.
