economics
national income accounting solutions




NATIONAL INCOME ACCOUNTING

EXERCISE

QUESTION1: What are the four factors of production and what are the remuneration to each of these called?

SOLUTION:

QUESTION 2:why should the aggregate final expenditure of an economy be equal to the aggregate factor payment? explain 

SOLUTION:

QUESTION3: distinguish between stock and flow between net investment and capital which is a stock and which is a flow? compare net investment and capital with flow of water into a tank

SOLUTION:

QUESTION4:  what is the difference between planned and unplanned inventory accumulation? write down the relation between change the inventory And value  added of the firm

SOLUTION:

QUESTION5: Write down the three identities of calculating the gdp of a country by the three methods also briefy explain why each of these should give us the same value of GDP

SOLUTION:

QUESTION6: define budget deflect and trade effect the excess of private investment over saving of a country in a particular year was rupees 2,000 crore the amount of budget defect was Rupees 1500 crores what was the value of rate defect of that country?

SOLUTION: 

QUESTION7: suppose the GDP of market price of a country in a particular year was rupees 1100 crore net factor income from award was rupees hundred crore the value of indirect taxes subsidies was rupees 150 crore and national income was Rupees at 50 crore calculate the aggregate value of depreciation

SOLUTION:

QUESTION8: net National Product at factor cost of a particular country in a year is rupees 1900 crore there are no interest payment made by household to the forms government for the forms government to the household the personal disposable income of the household is rupees 1200 crore the personal income taxes paid by them is rupees 600 borrowed and the value of retained earning of the form and government is valued at 200 crores what is the value of transfer payment made by the government and form to the households

SOLUTION:

QUESTION9: from the following data calculate personal income and personal disposable income

NET DOMESTIC PRODUCT AT FACTOR COST                      8000

NET FACTOR INCOME FROM ABROAD                                    200

UN DISBURSED PROFIT                                                           1000

CORPORATE TAX                                                                       500

INTEREST RECEIVED BY HOUSEHOLD                                  1500

INTEREST PAID BY HOUSEHOLD                                           1200

TRANSFER INCOME                                                                   300

PERSONAL INCOME                                                                   500

SOLUTION:

QUESTION10: in a single day Raju the barber collects rupees 500 from haircuts over this day his equipment appreciate in value of rupees 50 of the remaining rupees 450 Raju pay sales tax both rupees 38 100 rupees 200 and retain 220 for improvement and buying new equipment if father face rupees 20 as income tax for his income based on the information calculate Raju contribution to the following measure of income Gross Domestic Product NNP at market price NNP at factor cost personal income personal disposable income

SOLUTION:

QUESTION11: the value of nominal gnp Open Economy was rupees 2500 words in a particular area the value of GNP of that country during the same year evaluated at the price of the same base year was rupees 3000 crores calculate the value of GNP deflator of for the year in the percentage terms has the price level risen between the base year and the year under concentration

SOLUTION:

QUESTION12: write down some of the limitation of using GDP as an index of welfare of a country 

SOLUTION:

I HOPE THIS SOLUTIONS WILL HELP YOU A LOT