NDP and NNP

Q.

What are the 3 depreciation methods?

Q.

Domestic income, as well as national income, include only factor incomes.

1. True

2. False

Q.

Give the meaning of factor income to abroad and factor income from abroad. Also give an example of each.

Q.

The difference between gross domestic product and net domestic product is due to ___

1. Net factor income from abroad

2. depreciation

3. net indirect taxes

4. change in stock

Q.

Distinguish between devaluation and depreciation of domestic currency.

Q. Write the three 'basic problems' of any economic system.

Q.

Suppose the GDP at market price of a country in a particular year was Rs 1, 100 crores. Net Factor Income from Abroad was Rs 100 crores. The value of Indirect taxes − Subsidies was Rs 150 crores and National Income was Rs 850 crores. Calculate the aggregate value of depreciation.

Q.

Which of the following is not correct?

1. NDP at Factor Cost=NDP at market price - Indirect taxes+Subsidies

2. NNP at Market Price=GNP at market price + Depreciation

3. NDP at Market Price=NNP at market price - Net factor income from abroad

4. GDP at Factor Cost=NDP at factor cost + Depreciation

Q.

Factor income from NDP accruing to public sector is equal to

1. savings of non-departmental enterprises

2. both A and B

3. income from property and enterprise of the government going to departmental enterprises

4. none of these

Q. What is the difference between National Income and domestic Income?

Q.

GDP - Depreciation = ________.(A) NP. (B) NDP. (C) GNP. (D) Net Income.

Q. Domestic Income of a country can be more than its National Income.

1. True
2. False

Q. What are the three central problems of an economy?

Q. Define and differentiate between micro and macro economics.

Q. Calculate Domestic Income:

Particulars	Rs. in crores
(i) GNP at FC (ii) Indirect Taxes (iii) Factor income from abroad (iv) Factor income to abroad (v) Replacement of Fixed Capital	2, 700 60 150 180 150

Q. Discuss the central problems of an economy.

Q.

Q. The problem of 'what to produce' relates to _________.

1. the distribution of produced goods and services.
2. the production of goods
3. the technique of production to produce good.
4. none of these

Q. Distinguish between factor income and transfer receipt.

Q. Give comparison between Micro and Macro Economics.

Q. $NN{P}_{fc}$ is the most precise measure of national income.

1. False
2. True

Q. "The amount a country adds to its capital during a period is known as the capital formation during that period." Who stated this?

1. Nurkse
2. Prof. Kuznets
3. Benham
4. Prof. Marshall

Q.

If a country produces 1 lakh rupees worth of goods and 3 lakh rupees worth of services in 2018, and the assets used to produce those goods and services are depreciated by 50, 000 rupees, then NNP is equal to ____ rupees

1. 4, 00, 000

2. 3, 50, 000

3. 4, 50, 000

4. 1, 50, 000

Q. What is meant by factor income to abroad? State its components.

Q. In a two-sector economy model factor income of the households is equal to factor payments by firms.

1. True
2. False

Q. Very Short Answer Type Questions:
What will be the effect on imports if foreign exchange rate increases?

Q. National Income = NDP at factor cost - Net factor income from abroad

1. False
2. True

Q. NDP at Factor Cost = NDP at Market Price - Indirect Taxes + Subsidies

1. True
2. False

Q. The national income of nation is the ________.

1. government's annual revenue
2. surplus of public sector undertakings
3. sum total of factor incomes
4. exports minus imports

Q. Distinguish between the following, giving suitable examples in support of your answer:
Domestic product and national product.