National Income and Related Aggregates-National Disposable Income (CBSE Class-12 Economics): Questions 5 - 9 of 13

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Question number: 5

» National Income and Related Aggregates » National Disposable Income

Essay Question▾

Describe in Detail

If marginal propensity to save is 0.2. How much new investment is required to make the national income rise by Rs. 600 crores? Calculate.

Explanation

K= 11MPS = 110.2 = 1.25

K= ΔyΔI ΔI=YK = 6001.25 =480

So, desired increase in investment = Rs. 480 crore.

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Calculation of Marginal Propensity to Save

In… (8 more words) …

Question number: 6

» National Income and Related Aggregates » National Disposable Income

Essay Question▾

Describe in Detail

Calculate Gross National Product at Market Price an Net National Disposable income from the following data:

Explanation

Calculate Gross National Product at Market Price

Find Gross National Product at Market Price

-

( Rs. Crores)

Net current transfer to abroad

(-) 5

Profits

70

Consumption of fixed capital

30

Rent

40

Indirect tax

20

Interest

100

Royalty

10

Compensation of employees

600

Subsidy

5

Net factor income… (60 more words) …

Question number: 7

» National Income and Related Aggregates » National Disposable Income

Essay Question▾

Describe in Detail

Give reasons and explain how the following are treated while estimating 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 that it involve purchase of services by single production unit from to another production unit. so, it is not included in national income.

(ii) Rent free house to… (55 more words) …

Question number: 8

» 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: 9

» 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) …

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