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Explain the precautions that are taken while estimating additional income by the value-added method.
Concept: Circular Flow of Income and Methods of Calculating National Income
Giving reason comment on the shape of production possibilities curve based on the following schedule:
| Good X (units) | Good Y (units) |
| 0 | 8 |
| 1 | 6 |
| 2 | 4 |
| 3 | 2 |
| 4 | 0 |
Concept: Concepts of Production Possibility Frontier
If the Real GDP is Rs400 and Nominal GDP is Rs450, calculate the Price Index (base = 100).
Concept: GDP and Welfare
Giving reason, comment on the shape of Production Possibilities Curve based on the following table :
| Good X (units) | Good Y (units) |
| 0 | 20 |
| 1 | 18 |
| 2 | 14 |
| 3 | 8 |
| 4 | 0 |
Concept: Concepts of Production Possibility Frontier
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
Giving reason, comment on the shape of Production Possibilities Curve based on the following table :
| Good X (units) | Good Y (units) |
| 0 | 4 |
| 1 | 3 |
| 2 | 2 |
| 3 | 1 |
| 4 | 0 |
Concept: Concepts of Production Possibility Frontier
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
Define Production Possibilities Curve. Explain why it is downward sloping from left to right.
Concept: Concepts of Production Possibility Frontier
Define flow variable.
Concept: Concepts of Production Possibility Frontier
Define Consumption Goods.
Concept: Central Problems of an Economy
Find Net Value added at Market Price:
|
S.No |
Items |
Amount |
|
(i) |
Depreciation (Rs) |
700 |
|
(ii) |
Output sold (units) |
900 |
|
(iii) |
Price per unit of output (Rs) |
40 |
|
(iv) |
Closing stock (Rs) |
1,000 |
|
(v) |
Opening stocks (Rs) |
800 |
|
(vi) |
Sales tax (Rs) |
3,000 |
|
(vii) |
Intermediate cost (Rs) |
20,000 |
Concept: Central Problems of an Economy
What is a market economy?
Concept: Positive and Normative Economics
Giving reasons classify the following into intermediate products and final products:
(i) Furniture purchased by a school.
Concept: A Simple Economy
Giving reasons classify the following into intermediate products and final products
Chalks, dusters, etc, purchased by a school.
Concept: A Simple Economy
Explain the need for land reforms implemented in the agriculture sector.
Concept: Agriculture
How do infrastructure facilities boost production?
Concept: Infrastructure
Choose the correct alternative from given options:
Shift from Point A on Production Possibility Curve X1Y1 to point B on X2Y2 in the given figure indicates:
Concept: Concepts of Production Possibility Frontier
Fill up the blank.
A Production Possibility Curve (PPC) would be convex to the origin if the Marginal Rate of Transformation (MRT) is ___________.
Concept: Concepts of Production Possibility Frontier
Answer the following question.
Define net exports. How is it different from the net factor income from abroad?
Concept: Methods of Measurement of National Income >> Expenditure Method
Answer the following question.
Why is a Production Possibility Curve concave to the origin? Explain.
Concept: Concepts of Production Possibility Frontier
