National Income and Related Aggregates (CBSE Class-12 Economics): Questions 33 - 38 of 68

Get 1 year subscription: Access detailed explanations (illustrated with images and videos) to 523 questions. Access all new questions we will add tracking exam-pattern and syllabus changes. View Sample Explanation or View Features.

Rs. 900.00 or

Question number: 33

» National Income and Related Aggregates » Stocks and Flows

Appeared in Year: 2012

Essay Question▾

Describe in Detail

Autonomous consumption = 100 Rs.

Marginal propensity to consume = 0.70

National income = 1000 Rs.

Explanation

In this C = 100 Rs.

Pc (b) = 0.70

Y = 1000

So, consumption expenditure = C + by

= 100 + 0.70 × 1000

=100 + 700

= Rs. 800

Question number: 34

» National Income and Related Aggregates » Gross National Product

Appeared in Year: 2012

Essay Question▾

Describe in Detail

Giving reason explain how should the following be treated in estimating national income:

(i) Interest paid by banks on deposits by individuals.

(ii) National debt interest.

Explanation

(I) Interest paid by bank on deposits should be included in the

Estimation of National Income because it is a factor income

For the account holders.

(iii) National debt interest should not be included in

the estimation of National Income because it is not known

Whether the government has borrowed… (3 more words) …

Question number: 35

» National Income and Related Aggregates » Types of Goods

Appeared in Year: 2012

Essay Question▾

Describe in Detail

Given price of a good, how does a consumer decide as to how much of that good is to be purchased?

Explanation

In this a consumer compares marginal utility of the good with its price. The consumer will be at equilibrium when the marginal utility of good is equal to price of good.

It is represented as MUX = PX

If MUX > PX then price… (51 more words) …

Question number: 36

» National Income and Related Aggregates » Methods of Calculating National Income » Expenditure Method

Essay Question▾

Describe in Detail

Explain the ‘expenditure’ method of estimating national income.

Explanation

The expenditure method of measuring National Income is also called Income disposal Method. Expenditure method is a method which measures the final expenditure on gross private product at market price during an accounting year.

Then all privately produced goods and services are purchased for final use either by consumers for… (241 more words) …

Question number: 37

» National Income and Related Aggregates » Methods of Calculating National Income » Expenditure Method

Essay Question▾

Describe in Detail

From the following data calculate National Income by Income and Expenditure methods:

calculate National Income by Income and Expenditure methods

Find National Income by Income and Expenditure methods

(Rs crore)

Government final consumption expenditure

100

Subsidies

10

Rent

200

Wages and salaries

600

Indirect taxes

60

Private final consumption expenditure

800

Gross domestic capital formation

120

Social security contributions by employers

55

Royalty

25

Net factor income paid to abroad

30

Interest

20

Consumption of fixed capital

10

Profit

130

Net exports

70

Change in stock

50

Explanation

National income by income method = Rent + Royalty + wages and salaries + Social security contributions by employers + Interest + Profit - Net factor income paid to abroad

= 200+25+600+55+20+13030

=rs1000crore.

National income by expenditure method… (54 more words) …

Question number: 38

» National Income and Related Aggregates » Gross National Product

Essay Question▾

Describe in Detail

Calculate Gross National Product at Market Price and Net National Disposable Income from the following data:

Calculate Gross National Product at Market Price and Net National Disposable Income

Calculation in detail Gross National Product at Market Price and Net National Disposable Income

-

( Rs. crores)

Current transfers from government

25

Compensation of employees

600

Net current transfers from the rest of the world

20

Rent

100

Consumption of fixed capital

50

Interest

120

Net indirect tax

110

Profit

80

Mixed income of the self-employed

200

Net factor income from abroad

(-) 10

Explanation

(national product) NDP = Rent + Internet + Profit + Compensation of employees + Mixed income of the self-employed

= 100 + 120 + 80 + 600 + 200

= Rs. 1100 crores.

(Gross National Product) GNP = NDP + Net factor income from abroad + Net indirect tax +… (112 more words) …

Sign In