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Giving valid reason, state whether the following statement is true or false:
Dividend received from investment abroad is recorded on the credit side of the capital account.
Concept: Concept of Balance of Payments >> Current Account
Giving valid reason, state whether the following statement is true or false:
Depreciation of the Indian Currency will lead to promotion of Indian exports.
Concept: Determination of the Exchange Rate
Distinguish between Autonomous transactions and Accommodating transactions.
Concept: Concept of Balance of Payments >> Balance of Payments Surplus and Deficit
Find net value added at factor cost:
(Rs lakh)
(i) Durable use producer goods with a life span of 10 years 10
(ii) Single use producer goods 5
iii) Sale 20
(iv) Unsold output produced during the year 2
(v) Taxes on production 1
Concept: Circular Flow of Income and Methods of Calculating National Income
Find national income and private income:
| (Rs crore) | ||
| (i) | Rent | 200 |
| (ii) | Net current transfer to abroad | 10 |
| (iii) | National debt interest | 60 |
| (iv) | Corporate tax | 100 |
| (v) | Composition of employees | 900 |
| (vi) | Current transfers from government | 150 |
| (vii) | Interest | 400 |
| (viii) | Interest | 50 |
| (ix) | Undistributed profits | 250 |
| (x) | Net factor income to abroad | (-)10 |
| (xi) | Income accruing to government | 120 |
Concept: Private Income
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
Explain the need for land reforms implemented in the agriculture sector.
Concept: Agriculture
How do infrastructure facilities boost production?
Concept: Infrastructure
Answer the following question.
Why is a Production Possibility Curve concave to the origin? Explain.
Concept: Concepts of Production Possibility Frontier
Why does an economic problem arise? Explain.
Concept: Central Problems of an Economy
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
Distinguish between positive economics and normative economics, with suitable examples.
Concept: Positive and Normative Economics
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
