36,610 questions & answers

Net National Product at Factor Cost of a particular country in a year is Rs 1,900 crores. There are no interest payments made by the households to the firms/government, or by the firms/government to the households. The Personal Disposable Income of the households is Rs 1,200 crores. The personal income taxes paid by them is Rs 600 crores and the value of retained earnings of the firms and government is valued at Rs 200 crores. What is the value of transfer payments made by the government and firms to the households?

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.

From the following data, calculate Personal Income and Personal Disposable Income.

Rs (crore)

(a) Net Domestic Product at factor cost


(b) Net Factor Income from abroad


(c) Undisbursed Profit


(d) Corporate Tax


(e) Interest Received by Households


(f) Interest Paid by Households


(g) Transfer Income


(h) Personal Tax


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.

Why should the aggregate final expenditure of an economy be equal to the aggregate factor payments? Explain.

Write down the three identities of calculating the GDP of a country by the three methods. Also briefly explain why each of these should give us the same value of GDP.

What is the difference between planned and unplanned inventory accumulation? Write down the relation between change in inventories and value added of a firm.

What are the four factors of production and what are the remunerations to each of these called?

Describe the four major sectors in an economy according to the macroeconomic point of view.

Describe the Great Depression of 1929.

What is the difference between microeconomics and macroeconomics?

What are the important features of a capitalist economy?

What do you understand by positive economic analysis?

Distinguish between a centrally planned economy and a market economy.

Distinguish between microeconomics and macroeconomics.

What do you understand by normative economic analysis?

What is a production possibility frontier?

Discuss the subject matter of economics.

What do you mean by the production possibilities of an economy?

Discuss the central problems of an economy.