Advertisements
Advertisements
Question
State whether the following items will be included in the estimation of National Income or not? Give a reason for your answer.
Fresh tomatoes used by a food processing company.
Solution
Fresh tomatoes used by a food processing company will not be included in the National Income estimate since they are intermediate goods used in production and only final products are considered.
RELATED QUESTIONS
Find Gross National Product at Market Price and Private Income:
| Rs. in crore | ||
| 1 | Private final consumption expenditure | 800 |
| 2 | Net Current transaction to abroad | 20 |
| 3 | Net factor income to abroad | (-)10 |
| 4 | Government final consumption expenditure | 300 |
| 5 | Net indirect tax | 150 |
| 6 | Net domestic capital formation | 200 |
| 7 | Current transfer to government | 40 |
| 8 | Depreciation | 100 |
| 9 | Net imports | 30 |
| 10 | Income accruing to government | 90 |
| 11 | National debt interest | 50 |
Calculate 'National Income' and 'Gross National Disposable Income' from the following:
| (Rs in Arab) | ||
| 1 | Net imports | 60 |
| 2 | Net current transfers to abroad | (-)10 |
| 3 | Net domestic fixed capital formation | 300 |
| 4 | Government final consumption expenditure | 200 |
| 5 | Private final consumption expenditure | 700 |
| 6 | Consumption of fixed capital | 70 |
| 7 | Net change in stocks | 30 |
| 8 | Net factor income to abroad | 20 |
| 9 | Net indirect tax | 100 |
Calculate “Gross National Product at Market Price” from the following data:
|
S.No. |
Particulars |
(Rs in crores) |
|
|
(i) |
Compensation of employees |
2,000 |
|
|
(ii) |
Interest |
500 |
|
|
(iii) |
Rent |
700 |
|
|
(iv) |
Profits |
800 |
|
|
(v) |
Employer’s contribution to social security schemes |
200 |
|
|
(vi) |
Dividends |
300 |
|
|
(vii) |
Consumption of fixed capital |
100 |
|
|
(viii) |
Net indirect taxes |
250 |
|
|
(ix) |
Net exports |
70 |
|
|
(x) |
Net factor income to abroad |
150 |
|
|
(xi) |
Mixed income of self-employed |
1,500 |
|
GNP(fc) = GNP(mp) - ______.
National Income is a ______
What is real national income?
Identify the correctly matched items in Column A to that of Column B:
| Column A | Column B |
| 1. Social Welfare | (a) Total of economic and non-economic welfare |
| 2. Comparison of GDP of different countries | (b) GDPs evaluated at current market prices |
| 3. Economic welfare | (c) Situation of unemployment |
| 4. GDP deflator | (d) Includes prices of imported goods |
Factor Cost is the ______
Which of the following statement is true about perfect competition?
The study of National Income is related to:
Which of the following does the Market Price include?
National Income is the sum of factor incomes accruing to:
Assertion (A): There is no restriction on the entry and exit of the firms in the perfectly competitive market.
Reason (R): The perfect competition market is characterised by the sellers being price takers and not price makers.
On the basis of the data given below for an imaginary economy, estimate the Gross National Product at Market price (GNPMP):
| S.NO | Items | Amount (₹ in crore) |
| (i) | Household Consumption Expenditure | 2,000 |
| (ii) | Government Final Consumption Expenditure | 1,000 |
| (iii) | Gross Fixed Capital Formation | 1,100 |
| (iv) | Net additions to Stock | 200 |
| (v) | Exports | 600 |
| (vi) | Net factor income from abroad | 150 |
| (vii) | Imports | 400 |
