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Questions
Giving reason explain how should the following be treated in the estimation of national income:
Payment of corporate tax by a firm
How should the following be treated in estimating the national income of a country? You must give the reason for your answer.
Payment of corporate tax
Solution 1
Payment of a corporate tax is not included in the estimation of national income because it is a payment made by the firm out of their income.
Solution 2
Payment of corporate tax is included in the estimation of national income because it is a part of the corporate profit.
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RELATED QUESTIONS
Find national income from the following:
Autonomous consumption = Rs100
Marginal propensity to consume = 0.80
Investment = Rs 50
National income is the sum of factor incomes accruing to : (Choose the correct alternative)
(a) Nationals
(b) Economic territory
(c) Residents
(d) Both residents and non-residents
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 reasons explain how should the following be treated in the estimation of national income:
Purchase of machinery by a factory for own use
How should the following be treated while estimating national income? You must give the reason in support of your answer.
Purchase of taxi by a taxi driver.
Give reasons or explain the following
The propensity to save depends upon the level of income.
Fill in the blank using proper alternative given in the bracket:
National income is ........ concept.
Define or explain the following concept.
Induced Consumption expenditure.
(b) decreases
(c) becomes equal
(d) becomes zero
Write short note on:
Value added approach
State whether the following statement is true or false.
National income is computed every year.
Match the following groups:
| Group A | Group B | ||
| 1) | Income method | a) | Personal income – direct taxes |
| 2) | Unemployment allowance | b) | Money value of goods and services |
| 3) | Disposable Income | c) | Factor cost method |
| 4) | National Income | d) | Personal income subsidy |
| 5) | NNP(MP) | e) | Transfer payment |
| f) | GNP(MP) - Depreciation | ||
| g) | Output method | ||
| h) | Transfer income | ||
When net factor income from abroad is deducted from NNP, the net value is______.
Explain the meaning of non-market activities.
Nominal GNP is same as ____________.
Which one is true?
Which of the following is not a component of domestic income?
If factor cost is greater than marker price, it means that:
What is ‘National Income’?
