Advertisements
Advertisements
Question
Giving reason explain how should the following be treated in estimating national income:
i. Expenditure on fertilizers by a farmer.
ii. Purchase of tractor by a farmer.
Solution
i. Expenditure on fertilisers by a farmer will not be included in the estimation of National Income because it is an intermediate consumption to improve crop productivity.
ii. Purchase of a tractor by a farmer will be included in the estimation of National Income because it is part of gross domestic capital formation.
APPEARS IN
RELATED QUESTIONS
If real income is Rs 400 and price index is 105, calculate nominal income.
Explain the precautions that should be taken while estimating national income by expenditure method.
Other things remaining unchanged, when in a country the price of foreign currency rises, national income is: (choose the correct alternative)
a. Likely to rise
b. Likely to fall
c. Likely to rise and fall both
d. Not affected
Calculate 'Marginal Propensity to Consume' from the following data about an economy which is in equilibrium:
National income = 800
Autonomous consumption expenditure = 100
Investment expenditure = 100
Give reasons or Explain the following statements
Services of housewives are excluded from national income.
In an economy, S = −100 + 0.6 Y is the saving function, where S is Saving and Y is National Income. If investment expenditure is 1,100, calculate:
(1) Equilibrium level of National Income
(2) Consumption expenditure at equilibrium level of National Income.
Answer the following question:
Explain the concept of Gross domestic product at market prices.
State whether the following statement is true or false.
Inclusion of value of intermediate goods leads to double counting.
Distinguish between the following.
Personal income and Disposable income
Find the odd word
Concepts of national income -
GNP =______ + Net factor income from abroad.
Trace the relationship between GNP and NNP.
Explain briefly NNP at factor cost.
Real GNP is same as ______.
GDPFC = ____________.
Which of the following items are excluded from GNP measurement?
Which one is true?
Which of the following is correct?
Give economic term:
The volume of commodities and services turned out during a given period counted without duplication.
