National Income and Related Aggregates (CBSE Class-12 Economics): Questions 62 - 66 of 68

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Question number: 62

» National Income and Related Aggregates » Types of Goods

Essay Question▾

Describe in Detail

What is the likely effect on the study of good if the prices of the inputs used in production of that good fall? Explain.

Explanation

Input of price is used for production of shares in negative relationship and supply of good. When input price is decreased then its production cost also decreases. The producers increase the production of a good because of decrease in input price and supply of good increases.

This is supply curve digram.

This Is Supply Curve… (44 more words) …

Question number: 63

» National Income and Related Aggregates » National Disposable Income

Essay Question▾

Describe in Detail

Giving reason, explain how the following are treated in estimating national income:

(i) wheat grown by a farmer but used entirely for estimating for family’s consumption.

(ii) Earning of the shareholders from the shares.

(iii) Expenditure by government on providing free education.

Explanation

(i) The imputed value of wheat grown for self consumption included in estimation of national income and its reason is in this case farmer caught in consumption but not a market transaction. So, wheat grown by a farmer but used entirely for estimating for family’s consumption.

(ii) Earning of the… (75 more words) …

Question number: 64

» National Income and Related Aggregates » Types of Goods

Essay Question▾

Describe in Detail

Explain, with the help of numerical examples, the effect on total output of a good when all the inputs used in production of that good are increase simultaneously and in the same proportion.

Explanation

The behavior of Total Product (TP) is technically Returns to Scale. There are three possibilities:

(1) TP rises in greater proportion than the rise in inputs it is known as Increasing Returns to Scale. For example: Suppose there are only two inputs labor (L) and Capital (K). Suppose 1K +… (110 more words) …

Question number: 65

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

Essay Question▾

Describe in Detail

Calculate Net value Added at factor cost from the following data:

Calculate Net value Added at factor cost

Find Net value Added at factor cost

-

( Rs. Lakhs)

Depreciation

20

Intermediate cost

90

Subsidy

5

Sales

140

Exports

7

Change in stock

(-) 10

Imports of raw materials

3

Explanation

Net value Added at factor cost = Sales + Change in stock - Depreciation + Subsidy- Intermediate cost

= Equation

= Equation

= Rs. 25 Lakhs

Question number: 66

» National Income and Related Aggregates » National Disposable Income

Essay Question▾

Describe in Detail

Calculate national income and gross national disposable income from the following data:

Calculate national income and gross national disposable income

In this given table in deatail national income and gross national disposable income

-

( Rs. crores)

Current transfers by government

15

Private final consumption expenditure

400

Net current transfers from the rest of the world

20

Government final consumption expenditure

100

Net factor income from abroad

(-) 10

Net domestic capital formation

80

Consumption of fixed capital

50

Net exports

40

Net indirect taxes

60

Explanation

National income = Private final consumption expenditure + Government final consumption expenditure + Consumption of fixed capital

= 400 + 100 + 50

=550

gross national disposable income = National income + Net current transfers from the rest of the world + Net indirect taxes + Net factor income from… (23 more words) …

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