Growth Rate

Q.

From the following data calculate National income:

(a) Income method

(b) Expenditure method

(a) Compensation of employees 1200

(b) NFIA - 20

(c) NIT 120

(d) Profit 800

(e) Private final consumption expenditure 2000

(f) Net domestic capital formation 770

(g) Consumption of fixed capital 130

(h) Rent 400

(i) Interest 620

(j) Mixed income of self-employed 700

(k) Net exports - 30

(l) Govt. final consumption exp. 1100

OR

Which of the following will be included in National Income?

(a) Seeds purchased by a farmer

(b) Salary given to an Indian working in the Japanese embassy in India

(c) Stationary purchased by a student

(d) Imports by a household

Q.

Are the following stocks or flow variables?

(i) Investment

(ii) Monetary Expenditure

(iii) A Hundred Rupee Note

(iv) A Family's Consumption of Sugar

(v) Services of a Tutor

(vi) Production of Cement

(vii) The machinery of a Sugar Mill

Q.

Which of the following is an example of normal residents of India?

1. Foreign worker working in WHO located in india

2. The German working as Director in IMF office located in India.

3. Ambassador in India from rest of the world

4. Ambassador of India from rest of the world

Q.

Explain the concept of aggregate supply.

OR

Explain any three components of AD.

Q.

(a) Derive $ND{P}_{fc}$ from $GD{P}_{mp.}$

(b) Calculate gross fixed capital formation:

$ND{P}_{fc}=5500$

Depreciation = 100

Private final consumption expenditure =1200

Government final consumption expenditure =1000

Net imports =700

Subsidies =40

Decrease in stock =-200

Q.

Giving reasons, explain the treatment of the following while estimating national income:

(i) Expenditure on maintenance of an office building

(ii) Expenditure on adding a floor to the office building

(iii) Contribution to the provident fund by the employees

Q.

Differentiate between physical capital and human capital.

Q.

What is the difference between personal income and national income?

Q.

Explain the changes that take place when Aggregate Demand and Aggregate Supply are not equal.

Q.

Domestic product is equal to

1. National product - Net factor income from abroad

2. National product $÷$ Net factor income from abroad

3. National product $\times$ Net factor income from abroad

4. National product + Net factor income from abroad

Q.

National income refers to:

1. All of the above

2. Factor incomes only

3. Income of only normal residents of the country

4. The sum total of domestic income and net factor income from abroad

Q.

The difference between national and domestic income is:

1. Net indirect taxes

2. Net factor income from abroad

3. Both A and B

4. Consumption of fixed capital

Q.

Gross National Product equals

1. Net National Product adjusted for inflation

2. Gross Domestic Product adjusted for inflation

3. Gross Domestic Product plus net property income from abroad

4. Net National Product plus net property income from abroad

Q. calculate intermediate consumption from the following data: gross value of output=300 net value added of factor cost=100 subsidies=15 and depreciation=30

Q. Net factor income from abroad is ________________.

1. Exports minus Imports
2. Visible Exports minus Visible Imports
3. Factor income received from abroad minus factor income paid abroad
4. Factor incomes received from abroad

Q.

Per capita real output is best defined as:

1. The market value of all final goods and services produced in an economy in current prices.

2. The market value of all final goods and services produced in an economy in current prices divided by the population.

3. The market value of all final goods and services produced in an economy in the prices of a given year.

4. The market value of all final goods and services produced in an economy in the prices of a given year divided by the population.

Q. Write short note on 'factors determining elasticity of demand'.

Q. The best method of computing national income is _____.

1. income Method
2. product Method
3. expenditure Method
4. combination of income and production method

Q. National output is an example of a macroeconomic variable.

1. True
2. False

Q. What is meant by Net factor income from abroad?

Q. Long Answer Type Questions
What is meant by net factor income from abroad? Briefly discuss its various components.

Q.

1. True
2. False

Q. What is meant by excess demand in Macroeconomics?

Q. Suppose the GDP in a country is $450 million and the population of that country is 150 million. The per capita GDP of that country is .

1. $300 million
2. $30 million
3. $3 million
4. $0.3 million

Q.
How is the price of a commodity affected when its demand increases more than supply?

Q. In the third of the three stages of production __________.

1. the marginal product curve has a positive slope
2. the marginal product curve lies completely below the average product cuve
3. total product increases
4. average product increases

Q.

1. True
2. False

Q.

Suppose the Gross Domestic Product in a country is $450 million and the population of that country is 150 million. What is the per capita GDP of that country?

1. $300 million.

2. $30 million.

3. $3 million.

4. $0.3 million.

Q. Distinguish between domestic product and national product.

Q. __________ refers to a situation when AD is equal to AS beyond the full employment level.

1. Over Full Employment Equilibrium
2. Underemployment Equilibrium
3. Full Employment Equilibrium
4. None of these