National Income and Related Aggregates-National Disposable Income (CBSE (Central Board of Secondary Education- Board Exam) Class-12 Economics): Questions 10 - 12 of 13

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Question number: 10

» 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

= Equation

= Rs. 730 crore

Private income = National income + National debt interest + Current transfer from government

… (40 more words) …

Question number: 11

» 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: 12

» 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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