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Question
Giving reason explain how the following should be treated in the estimation of national income:
Payment of interest by a bank to an individual
Solution
Payment of interest by a bank to an individual is included in the estimation of national income because the bank has used the amount of saving of an individual for productive purposes.
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RELATED QUESTIONS
National income
With the increase in income, both consumption and savings increase.
Total Cost and Total Revenue.
Find national income and private income:
(Rs crore)
(i) Wages and salaries 1,000
(ii) Net current transfer to abroad 20
(iii) Net factor income paid to abroad 10
(iv) Profit 400
(v) National debt interest 120
(vi) Social security contributions by employers 100
(vii) Current transfers from government 60
(viii) National income accruing to government 150
(ix) Rent 200
(x) Interest 300
(xi) Royalty 50
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
Calculation National Income and Personal Disposable Income:
| (Rs crores) | ||
| 1 | Personal tax | 80 |
| 2 | Private final consumption expenditure | 600 |
| 3 | Undistributed profits | 30 |
| 4 | Private income | 650 |
| 5 | Government final consumption expenditure | 100 |
| 6 | Corporate tax | 50 |
| 7 | Net domestic fixed capital formation | 70 |
| 8 | Net indirect tax | 60 |
| 9 | Depreciation | 14 |
| 10 | Change in stocks | (-)10 |
| 11 | Net imports | 20 |
| 12 | Net factor income to abroad | 10 |
Giving reason explain how the following should be treated in the estimation of national income:
Payment of interest by a firm to a bank
Giving reasons explain how should the following be treated in the estimation of national income:
Purchase of machinery by a factory for own use
Fill in the blank using proper alternative given in the bracket:
National income is ........ concept.
State whether the following statements are TRUE or FALSE with reason.
National income is a flow concept.
Answer the following question:
State the precautions while using expenditure method to measure national income.
Distinguish between:
Net national product and Net domestic product.
Distinguish between:
National income at market prices and national income at factor cost
Answer the following question.
Define the problem of double counting in the computation of national income. State any two approaches to correct the problem of double counting.
Find the odd word
Concepts of national income -
GNP =______ + Net factor income from abroad.
Trace the relationship between GNP and NNP.
GNP at MP = ____________.
Which one is true?
