Advertisements
Advertisements
Question
An economy is in equilibrium. Find investment expenditure :
National income =1200
Autonomous consumption expenditure=150
Marginal Propensity to consume =0.8
Solution
Given that
Y= Rs1,200
`barC=Rs150`
c=0.8
As we know that
Y= C + I
`1200=barC+cY+I`
1,200= 150+0.8x1,200+I
1,200=1,110+I
I=Rs90
APPEARS IN
RELATED QUESTIONS
Government insure expenditure to popularize yoga among the masses. Analyses its impact on gross domestic product and welfare of the people.
From the data given below about an economy, calculate (a) investment expenditure and (b) consumption expenditure.
|
(i) |
Equilibrium level of income |
5,000 |
|
(ii) |
Autonomous consumption |
500 |
|
(iii) |
Marginal propensity to consume |
0.4 |
Answer the following question.
From the follow ing data, calculate GNPMP and NNPFC by Expenditure Method.
| (i) Mixed-income of self-employed | 450 crores |
| (ii) Compensation of employees | 550 crores |
| (iii) Private final consumption expenditure | 1000 crores |
| (iv) Net factor income from abroad | -20 crores |
| (v) Net indirect taxes | 150 crores |
| (vi) Consumption of fixed capital | 170 crores |
| (vii) Net domestic capital formation | 380 crores |
| (viii) Net exports | -30 crores |
| (ix) Profits | 400 crores |
| (x) Rent | 150 crores |
| (xi) Interest | 200 crores |
| (xii) Government final consumption expenditure | 550 crores |
Answer the following question.
Define net exports. How is it different from the net factor income from abroad?
Which of the following is the method of measuring National Income?
Which is the equilibrium condition of circular flow in the four sector model?
Which one is included in the four-sector model?
From the following data calculate investment expenditure:
Marginal Propensity to Save = 0.2
Equilibrium level of income = Rs 22,500
Autonomous consumption = Rs 500
Which of the following is excluded while calculating National Income as per the expenditure method?
Identify the correctly matched pair in Column A and Column B from the following:
| Column A | Column B | ||
| (1) | India should create more employment opportunities | (a) | Normative Economics |
| (2) | Unemployment | (b) | Microeconomics |
| (3) | Price behavior | (c) | Macroeconomics |
| (4) | Government-provided healthcare increases public expenditure. | (d) | Normative Economics |
State and discuss any two precautions to be considered while estimating national income by Expenditure Method.
Identify and explain the concept from the given illustration:
John purchased wheat flour for his bakery from the flour mill.
State whether the following items will be included in the estimation of National Income or not: Give a reason for your answer.
Government expenditure on street lighting.
Explain the different components of Final Expenditure in calculating the National income by Expenditure method.
