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.

MEDIUM

Earn 100

Which one of the following is not an example of final goods?

50% 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	$30$