Q30 of 30 Page 1

Find national income and private income: (Rs crore)

(i)Wages and salaries 1,000


(ii)Net current transfer to abroad 20


(iii)Net factor income paid to abroad 10


(iv)Profit 400


(v)National debt interest 120


(vi)Social security contributions by employers 100


(vii)Current transfers from government 60


(viii)National income accruing to government 150


(ix)Rent 200


(x)Interest 300


(xi)Royalty 50


NNPFC= Compensation of employees + Operating surplus + Mixed income of self-employed −Net factor income paid to abroad


= Wages and salaries +Social security contributions by employers + Rent + Interest + Profit + Royalty −Net factor income paid to abroad


=1,000 + 100 + 200 + 300 + 400 + 50 - 10


= Rs. 2,040


Private income = National income - National income accruing to government - Net current transfers to abroad + National debt interest + Transfers from government


= 2,040 - 150 - 20 + 120 + 60


=Rs 2,050


More from this chapter

All 30 →
26

Explain how open market operations are helpful in controlling credit creation.

 27

What is government budget? Explain how taxes and subsides can be used to influence allocation of resources.

OR


Define revenue receipts in government budget. Explain how government budget can used to bring in price stability in the economy.


 28

Given consumption curve, derive saving curve and state the steps taken in the process of derivation. Use diagram.




 29

(a) In which sub-account and on which side of balance of payments account will foreign investments in India be recorded? Given reasons.

(b)What will be the effect of foreign investments in India on exchange rate? Explain. (Skipped)