Question
Given saving curve, derive consumption curve and state the steps in doing so. Use diagram.
✓
Answer
Given saving curve $SS\ ',$
- Draw a $45^{\circ}$ line from the origin.
- Take $QC$ equal to $OS$ on the $Y-$axis.
- Draw a perpendicular line from $B$ to $B\ '$ on $OX-$axis which intersect $45^{\circ}$ line at point $B.$
- Join $C$ and $B$ and extend it to get consumption curve $CC\ '.$
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Calculate ‘National Income’ and ‘Private Income’ from the following data:
| (Rs. crores) | ||
| 1 | Net current transfers to the rest of the world. | 10 |
| 2 | Private final consumption expenditure. | 600 |
| 3 | National debt interest. | 15 |
| 4 | Net exports. | (-)20 |
| 5 | Current transfers from government. | 5 |
| 6 | Net domestic product at factor cost accruing to government. | 25 |
| 7 | Government final consumption expenditure. | 100 |
| 8 | Net indirect tax. | 30 |
| 9 | Net domestic capital formation Net factor income from abroad. | 70 |
| 10 | Net factor income from abroad. | 10 |
Calculate $\text{GNP}$ at $FC$ from the following data by:
→- Income method, and.
- Expenditure method.
| S. No | Particulars | $(₹)$ In Crore |
| $1.$ | Wages and salaries. | $800$ |
| $2.$ | Mixed income of self$-$employed. | $160$ |
| $3.$ | Operating surplus. | $600$ |
| $4.$ | Undistributed profit. | $150$ |
| $5.$ | Gross capital formation. | $330$ |
| $6.$ | Change in stocks. | $25$ |
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| $8.$ | Employers' contribution to social security schemes. | $100$ |
| $9.$ | Net factor income from abroad. | $(-20)$ |
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| $13.$ | Government final consumption expenditure. | $450$ |
| $14.$ | Net indirect taxes. | $60$ |
| $15.$ | Compensation of employees paid by the government. | $75$ |
How are the following treated in the estimation of national income?
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Calculate “Gross National Disposable Income” from the following data:
( in lakhs) |
|
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3,000 |
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300 |
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250 |
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100 |
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150 |
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200 |
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100 |
What is 'excess demand'? Explain the role of 'Reverse Repo Rate' in removing it.
Explain the role of the following in correcting 'deficient demand' in an economy:
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Calculate:
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- Consumption of fixed capital.
|
S. No
|
Particulars
|
$(₹)$ In Crose
|
| $1.$ |
Private final consumption expenditure.
|
$210$ |
| $2.$ |
Gross domestic product at market price $(GDP_{MP}).$
|
$320$ |
| $3.$ |
Wages and salaries.
|
$170$ |
| $4.$ |
Employer's contribution to provident fund.
|
$10$ |
| $5.$ |
Interest.
|
$20$ |
| $6.$ |
Indirect taxes.
|
$30$ |
| $7.$ |
Subsidies.
|
$5$ |
| $8.$ |
Rent.
|
$10$ |
| $9.$ |
Profit.
|
$45$ |
| $10$ |
Royalty.
|
$15$ |
| $11.$ |
Net factor income from abroad $\text{(NFIA)}.$
|
$3$ |
Will the following factor incomes be included in domestic factor income of India? Give reasons for your answer.
- Compensation of employees to the residents of Japan working in Indian embassy in Japan.
- Profits earned by a branch of foreign bank in India.
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- Profits earned by a branch of State Bank of India in England.
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