National Income and Related Aggregates (CBSE Class-12 Economics): Questions 59 - 61 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: 59

» National Income and Related Aggregates » Circular Flow of National Income

Essay Question▾

Describe in Detail

While estimating national income, how will you treat the following? Give reasons for your answer.

(i) Imputed rent of self-occupied houses.

(ii) Interest received on debentures.

(iii) Financial help received by flood victims

Explanation

(i) Imputed rent of self-occupied houses is included in estimation of national income as self-occupied house contain some value.

(ii) Interest received on debentures included in estimation of national income as it is part of factor income.

(iii) Financial help received by flood victims is included as transfer payment.

Question number: 60

» National Income and Related Aggregates » National Disposable Income

Essay Question▾

Describe in Detail

From the following data, calculate “national income” by (I) income method and (ii) expenditure method.

calculate national income

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

-

( Rs. In crores)

Net domestic capital formation

360

Interest

200

Rent

300

Private final consumption expenditure

1300

Government final consumption expenditure

730

Net exports

(-) 20

Net indirect taxes

70

Net current transfers from rest of the world

80

Consumption of fixed capital

60

Net factor income to abroad

(-) 50

Profits

600

Compensation of employees

1200

Explanation

(i) income method

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

= 200 + 300 + 600 + 1200 – (-50)

= Rs. 2350 crore

(ii) Expenditure method:

national income = Government final consumption expenditure + Private final consumption expenditure… (48 more words) …

Question number: 61

» National Income and Related Aggregates » National Disposable Income

Essay Question▾

Describe in Detail

Calculate ‘National income’ and ‘Private income’ from the following data:

Calculate National income and Private income

Find National income and Private income

-

(in Crores)

Net current transfer to the rest of the world

10

Private final consumption expenditure

600

National debt interest

15

Net exports

(-) 20

Current transfer from government

5

Net domestic product at factor cost accruing to government

25

Government final consumption expenditure

100

Net indirect tax

30

Net domestic capital formation

70

Net factor income from abroad

10

Explanation

National income = Private final consumption expenditure + Government final consumption expenditure + Net domestic capital formation + Net factor income from abroad + Net exports - Net indirect tax

= 600+100+70+10+(20)30

= Rs. 730 crore

Private… (61 more words) …

Sign In