Q28 of 36 Page 1

Will the following be included in the domestic product of India? Give reasons for your answer.

A. Profits earned by foreign companies in India


B. Salaries of Indians working in the Russian Embassy in India


C. Profits earned by a branch of State Bank of India in Japan

(a) It is a part of domestic factor income of India, because the foreign company is within the domestic territory of India.

(b) It is not a part of domestic factor income of India, because Russian Embassy in India is not a part of domestic territory of India.


(c) It is not a part of domestic factor income of India, because the branch of State Bank of India in Japan is not a part of domestic territory of India.


More from this chapter

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27

Distinguish A. between current account and capital account, and B. between autonomous transactions and accommodating transactions of balance of payments account.

 28

Explain the precautions that should be taken while estimating national income by expenditure method.

 29

Calculate (a) National Income, and (b) Net National Disposable Income:

(RS in crores)


(i) Compensation of employees 2,000


(ii) Rent 400


(iii) Profit 900


(iv) Dividend 100


(v) Interest 500


(vi) Mixed income of self-employed 7,000


(vii) Net factor income to abroad 50


(viii) Net exports 60


(ix) Net indirect taxes 300


(x) Depreciation 150


(xi) Net current transfers to abroad 30

 30

Given a consumption curve, outline the steps required to be taken in deriving a saving curve from it. Use diagram.