NATIONAL INCOME

When Kavya, Naira, and Arjun are playing a game, in which of the following conditions can they see that the equilibrium level of circular flow of income is established?

• Where savings is equal to investment

• Where savings is larger than investment

• Where investment is larger than savings

• None of the above

WHICH OF THE FOLLOWING AGGREGATE IS CONSIDERED AS DOMESTIC INCOME ?

• NDP AT MP

• NNP AT FC

• GNP AT FC

• NDP AT FC

Which method of calculating national income gives the aggregate of GDP at MP excluding the rest of the world?

• Income Method

• Product Method

• Expenditure Method

• None of the above

Which of the following methods of national income includes change in stock in the inventory?

• Product method only

• Income method only

• Expenditure method only

• Both product and expenditure method

What is the result of NDP at factor cost plus depreciation, and how does it benefit Dhruv, Aarav, and Avani?

EXPLAIN THE CIRCULAR FLOW OF INCOME IN A 2 SECTOR MODEL WITH SAVINGS AND INVESTMENT .

HOW DOES ONE EXPLAIN THE CONCEPT OF NOMINAL GDP ?

• GDP WHERE THE PRICES ARE CONSTANT

• NDP WHERE THE PRICES ARE TAKEN CURRENT

• NNP AT PREVALING PRICES

• GDP IS CALCULATED AT CURRENT PRICES

STATE THE 5 PRECAUTIONS TAKEN WHILE CALCULATING THE NATIONAL INCOME FROM INCOME METHOD ?

HOW IS PERSONAL INCOME CALCULATED FROM PERSONAL DISPOSABLE INCOME. ?

• PERSONAL DISPOSABLE INCOME+ PERSONAL TAXES PAID

• PERSONAL DISPOSABLE INCOME-PERSONAL TAXES

• PERSONAL DISPOSABLE INCOME - PRIVATE INCOME

• NONE OF THESE

WORKOUT THE CALCULATION FOR NNP AT FC FROM THE DATA GIVEN BELOW :

ITEMS

(i) Net Capital formation - 200 Cr.

(ii) private final consumption expenditure - 1000 Cr.

(iii) Govt. final consumption expenditure. - 300 Cr.

(iv) Consumption of fixed capital - 50 Cr.

(v) Net indirect taxes - 200 Cr.

(vi) Net factor income from abroad. - ( - 10 ) Cr.

(vii) Factor income to abroad ( - 17 ) Cr.

(viii) Net exports 10 Cr.