National Income and Related Aggregates (CBSE Class-12 Economics): Questions 54 - 58 of 68

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Question number: 54

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

Essay Question▾

Describe in Detail

From the following data, calculate “national income” by (a) income method and (b) expenditure method:

calculate national income calculate national income by (a) income method and (b) expenditure method:

-

( Rs. in crores)

Interest

150

Rent

250

Government final consumption expenditure

600

Private final consumption expenditure

1200

Profits

640

Compensation of employees

1000

Net factor income to abroad

30

Net indirect taxes

60

Net exports

(-) 40

Consumption of fixed capital

50

Net domestic capital formation

340

Explanation

(a) Income method

National income = Interest + Rent + Profits + Compensation of employees - Net factor income to abroad

=150 + 250 + 640 + 1000 – 30

= Rs. 2010 Crore

(b) Expenditure method:

National income = Government final consumption expenditure + Private final consumption expenditure +… (56 more words) …

Question number: 55

» National Income and Related Aggregates » National Disposable Income

Essay Question▾

Describe in Detail

Giving reasons explain how the following are treated while estimation of national income:

(i) Payment of fees to a lawyer engaged by a firm.

(ii) Rent free house to and employee by an employer.

(iii) Purchases by foreign tourists.

Explanation

(i) Payment of fees to a lawyer engaged by a firm: - it is central expenditure for the company it’s reason is it involve purchase of services by single production unit to another production unit. so, it is not included in national income.

(ii) Rent free house to and employee… (53 more words) …

Question number: 56

» National Income and Related Aggregates » Types of Goods

Short Answer Question▾

Write in Short

What is meant by inferior good in economics?

Question number: 57

» National Income and Related Aggregates » Net National Product

Short Answer Question▾

Write in Short

Calculate net value added at factor cost from the following data:

-

Rs. In Crores

(I) Purchase of machinery to be used in the production unit

100

(ii) Sales

200

(iii) Intermediate costs

90

(iv) Indirect taxes

12

(v) Change in stock

10

(vi) Excise duty

6

(vii) Stock of raw material

5

Question number: 58

» National Income and Related Aggregates » Gross and Net Domestic Product

Essay Question▾

Describe in Detail

Calculate “gross national product at factor cost” from the following data by (I) income method and (ii) Expenditure method:

Calculate gross national product at factor cost

Find gross national product at factor cost by (I) income method and (ii) Expenditure method:

-

( Rs. In crores)

Private final consumption expenditure

1000

Net domestic capital formation

200

Profits

400

Compensation of employees

800

Rent

250

Government final consumption expenditure

500

Consumption of fixed capital

60

Interest

150

Net current transfer from rest of the world

(-) 80

Net factor income from abroad

(-) 10

Net exports

(-) 20

Net indirect taxes

80

Explanation

(i) income method: -

Gross national product at factor cost = Profits + Compensation of employees + Rent + Interest + Net factor income from abroad

= 400 + 800 + 250 + 150 + 60 + (-10)

= Rs. 1650 crore

(ii) Expenditure method: -

gross national product at… (52 more words) …

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