Loss of fixed assets over time due to wear and tear.

Destruction od a plant in a fire accident.

Loss of fixed assets in an earthquake.

Closure of the plant due to lockout.

Loss of fixed assets over time due to wear and tear.

Define capital formation? OR Define investment?

The addition to the capital stock of the country is known as investment or capital formation . Example- Construction of building, adding to the investment of goods, etc. Investment is of two types: Gross investment and Net investment.

EASY

Earn 100

Depreciation means:

100% studentsanswered this correctly

Important Questions on National Income Accounting

EASY

Economics>Macroeconomics>National Income Accounting>Basic Concepts of Macroeconomics

Which of the following is an example of Non-durable good?

MEDIUM

Economics>Macroeconomics>National Income Accounting>Basic Concepts of Macroeconomics

Define net exports. How is it different from net factor income from abroad?

MEDIUM

Economics>Macroeconomics>National Income Accounting>Basic Concepts of Macroeconomics

Gross investment can be equal to net investment.

MEDIUM

Economics>Macroeconomics>National Income Accounting>Basic Concepts of Macroeconomics

Intermediate goods are still within the _____ boundary.

HARD

Economics>Macroeconomics>National Income Accounting>Basic Concepts of Macroeconomics

Suppose firm A sold raw material to firm B for $₹ 1, 000$ and to firm C for $₹ 600$ . Firm B sold its product partly to private consumers for $₹ 800$ and the remaining product was exported for $₹ 600$ , Firm C part of its product to the government for $₹ 500$ for public consumption, and the remaining product worth $₹ 500$ was unsold stock left with it. (Assume that firm A buys no raw material).

(i) Find the value added by firm A firm B and firm C

(ii) Total Consumption Expenditure

EASY

Economics>Macroeconomics>National Income Accounting>Basic Concepts of Macroeconomics

Define capital formation?

Define investment?

EASY

Economics>Macroeconomics>National Income Accounting>Basic Concepts of Macroeconomics

Suppose the GDP at market price of a country in a particular year was Rs.

1100

crores. Net Factor Income from Abroad was Rs.

100

crores. The value of (Indirect taxes-Subsidies) was Rs.

150

crores and National Income was Rs.

850

crores. Calculate the aggregate value of depreciation.

HARD

Economics>Macroeconomics>National Income Accounting>Basic Concepts of Macroeconomics

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.

HARD

Economics>Macroeconomics>National Income Accounting>Basic Concepts of Macroeconomics

Calculate Intermediate Consumption from the following data:

Particulars	₹ in crore
(i) Gross value of output	$300$
(ii) Net value added of factor cost (NVA_FC)	$100$
(iii) Subsidies	$15$
(iv) Depreciation	$30$