Advertisements
Advertisements
Question
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.
Solution
Expenditure on upgradation of fixed asset by a firm: Included in national income.
Reason: It is capital formation expense. As a result, it is a sort of investment expenditure, and it is included in the estimation of National Income on both consumption and investment.
APPEARS IN
RELATED QUESTIONS
Total Cost and Total Revenue.
Explain in detail ‘saving function’ with schedule and diagram.
Find national income from the following:
Autonomous consumption = Rs100
Marginal propensity to consume = 0.80
Investment = Rs 50
Giving reason explain how should the following be treated in the estimation of national income:
Payment of corporate tax by a firm
Write explanatory answer:
Explain the output method of measuring national income.
State whether the following statements are TRUE or FALSE:
Saving increases with increase in income.
Give reasons or explain the following statements:
The net national income is less than gross national income.
Answer in brief.
Give different definitions of National Income.
Distinguish between:
Net national product and Net domestic product.
Write short note on:
Expenditure method of measuring national income.
Complete the following statement.
NNP is obtained by ______.
- 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)
NNP stands for______.
Explain briefly NNP at factor cost.
What is the solution to the problem of double counting in the estimation of national income?
GNP at MP = ____________.
GDPFC = ____________.
If economic subsidies are added to and Indirect taxes are substracted from the national income at market prices, then it will be equal to ______.
Which of the following is not a component of domestic income?
Explain the meaning of national income.
