6 Marks Question

Question 16 Marks

i. From the following data, calculate Fiscal deficit and Primary deficit:

ii. From the following data about a government budget, find out the following:
i. Revenue deficit
ii. Fiscal deficit
iii. Primary deficit

Answer

(i) Fiscal Deficit
= (100 + 110) - (95 + 80)
= ₹ 35 crore
Primary Deficit = Fiscal Deficit - iii
= 35 - 10
= ₹ 25 crore
(ii) i. Revenue Deficit:
Revenue deficit = Revenue expenditure - Revenue receipts
Revenue expenditure = 10
Revenue receipts = 80
Revenue Deficit = 100 - 80
= Rs 20 arab
ii. Fiscal deficit:
Fiscal deficit = Revenue Expenditure + Capital Expenditure - Revenue Receipts Capital Receipts net of Borrowings
= 100 + 110 - 80 - 95
= Rs 35 arab
iii. Primary Deficit:
Primary deficit = Fiscal deficit - Interest payment
= 35 - 10
= Rs 25 arab.

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Question 26 Marks

i. Calculate the Net National Product at Market Price from the given details.

ii. Calculate Intermidiate consumption from the following data :

Answer

i. Net Domestic Product at Factor Cost (NDP ${ }_{ FC }$ )
= Compensation of Employees + Rent + Interest + Profit + Mixed Income of Self Employed
= 3,000 + 600 + 700 + 1,000 + 8,000
= Rs. 13,300 crores
Net National Product at Market Price (NNP $M P$ )
$= NDP _{ fc }-$ Net Factor Income to Abroad + Net Indirect Taxes $=13,300-60+500$
= Rs. 13,740 crores
ii. Intermediate consumption
$GVA _{ mp }=$ Value of output - NVA $_{F C}-$ NIT - Depreciation $($ Here NIT $=$ IT-S)
= 200 - 80 - (15 - 5) - 20
= 200 - 80 - 10 - 20
= ₹ 90 Lakh.

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Question 36 Marks

$i$. Calculate National Income from the following data.

$ii. a$ .Define value of output How is it dirrent from value addition?
$b$ . Calculate the value of Mixed income of self $-$ Employrd from the following data.

Answer

$(i) i.$ By using Expenditure Method:
National Income$ ( \text{NNP} _{ FC } )$
$=$ Private Final Consumption Expenditure $+$ Government Final Consumption
Expenditure $+$ Gross Domestic Capital Formation$ -$ Net Imports $-$ Net Indirect Taxes $-$
Consumption of Fixed Capital $+$ Net Factor Income from Abroad
$= 900 + 400 + 250 - 30 - 100 - 20 + (- 40)$
$= 1,550 - 190$
$= Rs. 1,360 $ crore.
National Income includes the production of only normal residents of the country even if they are outside the domestic territory of the country.
$(ii) i$. Value of output is the market value of goods and services produced by a firm during an accounting year. value addition is different from value of output because it reduces the value of intermediate consumption from value of output.
$ii. \text{NDP} _{ FC }= \text{GDP} _{ MP }-\text { depreciation }- \text{NIT}$
$\text{NDP} _{ FC }=27,500-1,100-(2,100-750)$
$\text{NDP }_{ FC }=25,050$
$25,050=17,300+1,200+\text { mixed income }+1,800+2,000$
Mixed income $=25,050-22,300=2,750$

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Economics 6 Marks Question

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