Real flow is also known as nominal flow.

Important Questions on National Income Accounting

EASY

Economics>Macroeconomics>National Income Accounting>Calculation of National Income

Circular flow of income does not take place in case of closed economy.

EASY

Economics>Macroeconomics>National Income Accounting>Calculation of National Income

Rs 2,000 note lying in wallet of Rohini, a student is an example of _____ (stock/flow) variable.

HARD

Economics>Macroeconomics>National Income Accounting>Calculation of National Income

Replacement cost and depreciation of the asset are same.

EASY

Economics>Macroeconomics>National Income Accounting>Calculation of National Income

'Inventory is a stock variable.'

EASY

Economics>Macroeconomics>National Income Accounting>Calculation of National Income

Capital formation is a flow.

EASY

Economics>Macroeconomics>National Income Accounting>Calculation of National Income

Flow of factor payments and payments for goods and services between households and firms is known as _____ (Nominal Flow/Physical Flow).

EASY

Economics>Macroeconomics>National Income Accounting>Calculation of National Income

In a two-sector economy, total production is always equal to total consumption.
 

HARD

Economics>Macroeconomics>National Income Accounting>Calculation of National Income

What is the difference between planned and unplanned inventory accumulation? Write down the relation between change in inventories and value added of a firm.

EASY

Economics>Macroeconomics>National Income Accounting>Calculation of National Income

_____ variable is a dynamic concept.

EASY

Economics>Macroeconomics>National Income Accounting>Calculation of National Income

Generation and distribution are the two phases in circular flow of income.

EASY

Economics>Macroeconomics>National Income Accounting>Calculation of National Income

National Income of a country is a stock concept.

EASY

Economics>Macroeconomics>National Income Accounting>Calculation of National Income

_____ is also known as Nominal Flow.

EASY

Economics>Macroeconomics>National Income Accounting>Calculation of National Income

_____ variable refers to that variable, which is measured at a particular point of time.

EASY

Economics>Macroeconomics>National Income Accounting>Calculation of National Income

There are no exports in a closed economy.

HARD

Economics>Macroeconomics>National Income Accounting>Calculation of National Income

Write down the three identities of calculating the GDP of a country by the three methods. Also briefly explain why each of these should give us the same value of GDP.

EASY

Economics>Macroeconomics>National Income Accounting>Calculation of National Income

_____ phase involves flow of factor income from firms to the households.

EASY

Economics>Macroeconomics>National Income Accounting>Calculation of National Income

Cotyledons are also called-

HARD

Economics>Macroeconomics>National Income Accounting>Calculation of National Income

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

EASY

Economics>Macroeconomics>National Income Accounting>Calculation of National Income

_____ flow determines the magnitude of growth process in an economy.

EASY

Economics>Macroeconomics>National Income Accounting>Calculation of National Income

Real Flow is also known as _____.