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Calculate National Income and Private Income :
| (Rs crores) | ||
| (i) | Net imports | 5 |
| (ii) | Net domestic capital formation | 15 |
| (iii) | Personal income | 90 |
| (iv) | National debt interest | 10 |
| (v) | Corporate tax | 25 |
| (vi) | Government final consumption expenditure | 20 |
| (vii) | Net factor income to abroad | (−) 5 |
| (viii) | Net indirect tax | 10 |
| (ix) | Undistributed profits | 0 |
| (x) | Private final consumption expenditure | 100 |
Concept: Private Income
From the data given below about an economy, calculate (a) investment expenditure and (b) consumption expenditure.
|
(i) |
Equilibrium level of income |
5,000 |
|
(ii) |
Autonomous consumption |
500 |
|
(iii) |
Marginal propensity to consume |
0.4 |
Concept: Methods of Measurement of National Income >> Expenditure Method
Explain the need for land reforms implemented in the agriculture sector.
Concept: Agriculture
Answer the following question.
What precautions should be taken while estimating national income by value-added method? Explain.
Concept: Circular Flow of Income and Methods of Calculating National Income
Do you agree with the given statement? Give valid reasons in support of your answer.
"Higher Gross Domestic Product (GDP) means greater per capita availability of goods in the economy."
Concept: GDP and Welfare
Define the following: Value Addition
Concept: Circular Flow of Income and Methods of Calculating National Income
Assertion (A): Public goods are those goods and services that are collectively consumed by the public.
Reason (R): Public goods are excludable and rivalrous in nature.
Concept: Factor Cost, Basic Prices and Market Prices
Giving valid reasons explain which of the following will not be included in estimation of National Income of India?
- Purchase of shares of X. Ltd. by an investor in the National Stock Exchange.
- Salaries paid by the French Embassy, New Delhi to the local workers of the housekeeping department.
- Compensation paid by the Government of India to the victims of floods.
Concept: Factor Cost, Basic Prices and Market Prices
Study the following information and compare the Economies of India and Singapore on the grounds of ‘Investment in infrastructure as a percentage of GDP’
| Some Infrastructure in India and other Countries, 2018 | |||||
| Country | Investment* in Infrastructure as a % GDP | Percentage of people using safely managed | Mobile Subscribers/100 People | Consumption of energy (mL tonnes of oil equivalent) | |
| Drinking Water Sources | Sanitation Services | ||||
| China | 44 | 96 | 72 | 115 | 3274 |
| Hong Kong | 22 | 100 | 92 | 259 | 31 |
| India | 30 | 94 | 40 | 87 | 809 |
| South Korea | 31 | 98 | 100 | 130 | 301 |
| Pakistan | 16 | 35 | 64 | 73 | 85 |
| Singapore | 28 | 100 | 100 | 146 | 88 |
| Indonesia | 34 | 87 | 61 | 120 | 186 |
Sources: World Development Indicators 2019, World Bank website: www.worldbank.org.; BP Statistical Review of World Energy 2019. 69th Edition.
Note: (*) refers to Gross Capital Formation.
Concept: Factor Cost, Basic Prices and Market Prices
Explain how ‘Non-Monetary Exchanges’ impact the use of Gross Domestic Product as an index of economic welfare.
Concept: GDP and Welfare
Distinguish between ‘Value of Output’ and ‘Value Added’.
Concept: Circular Flow of Income and Methods of Calculating National Income
Read the following figure carefully and choose the correct pair from the alternatives given below:
Concept: Methods of Measurement of National Income >> Income Method
State and discuss any two precautions to be considered while estimating national income by Expenditure Method.
Concept: Methods of Measurement of National Income >> Expenditure Method
_________ committee was set up for the development and promotion of small scale industries in India.
Concept: Industry and Trade
First Industrial Policy Resolution of Independent India was announced in the year ______.
Concept: Industry and Trade
‘Land ceiling promotes equity.’ Support the given statement with valid explanation.
Concept: Agriculture
Discuss briefly, how institutional reforms (land reforms) have played a significant role in transforming Indian agriculture.
Concept: Agriculture
Read the following text carefully and answer the given questions on the basis of the same and common understanding:
|
The Green Revolution in India began in the mid-1960s marking a transition from traditional agriculture in India to high-yielding varieties of seeds and the associated modern agricultural techniques. The need for introduction of Green Revolution in India arose due to a shortage of food-grains in the post-independent period. he government in the post-independent India wanted to ensure self-dependence in terms of food-grain production. Such efforts coincided with the development of high-yielding varieties of seeds of wheat developed by Dr. Norman Borlung and his associates in Mexico. These seeds also necessitated changes in farming techniques such as the addition of fertilizers, pesticides and better irrigation facilities. High yielding varieties of seeds were first introduced in India in the states of Punjab, Haryana and parts of western Uttar Pradesh. In the early period of the green revolution in India, the focus was to acclimatise the new system with the more resource-intensive agricultural methods. The argument for introducing the new crop varieties was to increase agricultural production in terms of higher crop yields. The seeds introduced during the early period of the green revolution in Punjab were not highyielding by themselves. These high yields were possible due to the seeds being highly responsive to certain inputs such as irrigation water and fertilizers. The green revolution in India, thus, necessitated a resource-intensive process whereby, those who could make significant capital investments could benefit, whereas, those others became more marginalized in regions affected by practices of the green revolution in India. On one hand, the results derived from the green revolution helped farmers to increase their yield and income and on the other hand, it helped the government to procure and preserve more food grains through agencies like Food Corporation of India. These food grain reserves were helpful in creation of buffer stocks in India, which helped in the situations of adversities. |
- Why was Green revolution implemented and how did it benefit the farmers?
- Justify the following statement with valid explanation:
‘Green revolution enabled the government to procure sufficient food grains to build its stocks that could be used during time of shortage’.
Concept: Agriculture
Distinguish between Factor Cost and Market Price.
Concept: Methods of Measurement of National Income >> Income Method
State the meanings of the following:
Externalities
Concept: GDP and Welfare
