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प्रश्न
Explain national income determination through the two alternative approaches. Use Diagram.
उत्तर
Aggregate demand and aggregate supply approach
The equilibrium level of income is attained only when the aggregate demand is equal to the aggregate supply. It is the level of output where producers plan to produce an amount of good which is equal to consumers’ plans to purchase the amount of good. Thus, equilibrium is struck where the planned output (AS) is equal to the planned expenditure (AD) during a period of time
Saving and Investment Approach
The equilibrium is determined at a point where the saving and investment are equal to each other, i.e. leakages = injections
In the diagram, SS shows the saving curve and II shows the investment curve, and the investment curve shows autonomous investment. Savings is equal to investment at Point E, where the saving curve SS and the investment curve intersect each other.
APPEARS IN
संबंधित प्रश्न
Total Cost and Total Revenue.
Unpaid services are not included in national income.
Find national income from the following:
Autonomous consumption = Rs100
Marginal propensity to consume = 0.80
Investment = Rs 50
Calculation National Income and Personal Disposable Income:
| (Rs crores) | ||
| 1 | Rent | 100 |
| 2 | Net current transfers to rest of the world | 30 |
| 3 | Social security contributions by employers | 47 |
| 4 | Mixed income | 600 |
| 5 | Gross domestic capital formation | 140 |
| 6 | Royalty | 20 |
| 7 | Interest | 110 |
| 8 | Compensation of employees | 500 |
| 9 | Net domestic capital formation | 120 |
| 10 | Net factor income from abroad | (-)10 |
| 11 | Net indirect tax | 150 |
| 12 | Profit | 200 |
How should the following be treated in estimating the national income of a country? You must give the reason for your answer
Expenditure on providing police services by the government
Calculate 'Marginal Propensity to Consume' from the following data about an economy which is in equilibrium:
National income = 800
Autonomous consumption expenditure = 100
Investment expenditure = 100
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.
Write short note on:
Personal disposable income
State whether the following statement is true or false.
National income is computed every year.
State whether the following statement is true or false.
Financial year in India is leap year.
Fill in the blank with appropriate alternatives given below
Paper purchased by a publisher is __________.
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)
When net factor income from abroad is deducted from NNP, the net value is______.
The value of NNP at production point is called______.
GDP MP = Rs.1000 and subsidies = Rs.50, then GDP FC will be ______.
Which of the following is correct?
If economic subsidies are added to and Indirect taxes are substracted from the national income at market prices, then it will be equal to ______.
If for a country net factor income from abroad is negative then:
How should the following be treated in estimating National Income of a Country? Give valid reasons.
Profit earned by Foreign Banks in India.
