NCERT Solution
Class 12
Macro Economics
National Income Accounting
in a single day raju the barber collects rs 500...

Question:
In a single day Raju, the barber, collects Rs 500 from haircuts; over this day, his equipment depreciates in value by Rs 50. Of the remaining Rs 450, Raju pays sales tax worth Rs 30, takes home Rs 200 and retains Rs 220 for improvement and buying of new equipment. He further pays Rs 20 as income tax from his income. Based on this information, complete Raju’s contribution to the following measures of income (a) Gross Domestic Product (b) NNP at market price (c) NNP at factor cost (d) Personal income (e) Personal disposable income.

Answer:

(a) GDPMP = Rs.500 [Barber collects from haircut]

(b) NNPMP = GDP - Depreciation
= 500 - 50
= Rs.450

(d) PI = NNPFC - Retained earnings
= 420 - 220
= Rs.200

(e) PDI = PI - Income tax
= 200 - 20
= Rs.180

1
0
0
Report?

Report a problem on Specifications:

Email id:

Comments

Next Question >

SELECT ex_no,question,question_no,id,chapter FROM question_mgmt as q WHERE courseId='3' AND subId='59' AND ex_no!=0 AND status=1 and id!=5470 ORDER BY views desc, last_viewed_on desc limit 0,10

Popular questions of class 12 Macro Economics

Differentiate between devaluation and depreciation.

What is a barter system? What are its drawbacks?

Write down some of the limitations of using GDP as an index of welfare of a country.

Explain the relation between government deficit and government debt.

From the following data, calculate Personal Income and Personal Disposable Income.
Rs (crore)
(a) Net Domestic Product at factor cost 8,000
(b) Net Factor Income from abroad 200
(c) Undisbursed Profit 1,000
(d) Corporate Tax 500
(e) Interest Received by Households 1,500
(f) Interest Paid by Households 1,200
(g) Transfer Income 300
(h) Personal Tax 500

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

Give the relationship between the revenue deficit and the fiscal deficit.

Discuss the issue of deficit reduction.

What is the difference between ex ante investment and ex post investment?

Suppose C = 40 + 0.8Y D, T = 50, I = 60, G = 40, X = 90, M = 50 + 0.05Y

(a) Find equilibrium income. (b) Find the net export balance at equilibrium income (c) What happens to equilibrium income and the net export balance when the government purchases increase from 40 and 50?

SELECT ex_no,question,question_no,id,chapter FROM question_mgmt as q WHERE courseId='3' AND subId='59' AND ex_no!=0 AND status=1 and id!=5470 ORDER BY last_viewed_on desc limit 0,10

Recently Viewed Questions of Class 12 Macro Economics

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.

Calculate the open economy multiplier with proportional taxes, T = tY, instead of lump-sum taxes as assumed in the text.

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?

Differentiate between balance of trade and current account balance.

Distinguish between revenue expenditure and capital expenditure.

Distinguish between the nominal exchange rate and the real exchange rate. If you were to decide whether to buy domestic goods or foreign goods, which rate would be more relevant? Explain.

Are the concepts of demand for domestic goods and domestic demand for goods the same?

What is a barter system? What are its drawbacks?

Differentiate between devaluation and depreciation.

What are official reserve transactions? Explain their importance in the balance of payments.

< Previous Question

Next Question >

Popular questions of class 12 Macro Economics

Recently Viewed Questions of Class 12 Macro Economics

Comments

Comment(s) on this Question

NCERT Solutions

Quick Links

Resources

Support