Macroeconomic Identities

IMPORTANT

Macroeconomic Identities: Overview

This topic covers concepts, such as, Net Domestic Product, Net National Product, Personal Disposable Income and National Income etc.

Important Questions on Macroeconomic Identities

HARD
IMPORTANT
Economics>National Income Accounting>Macroeconomic Identities> Q 1

'Subsidies to the producers, should be treated as transfer payments.' Defend or refute the given statement with valid reason.

MEDIUM
IMPORTANT
Economics>National Income Accounting>Macroeconomic Identities> Q 2

Which of the following statement is incorrect?

HARD
IMPORTANT
Economics>National Income Accounting>Macroeconomic Identities> Q 3

Given the following data, find the missing values of 'Gross Domestic Capital Formation' and 'Wages and Salaries':

  Particulars ₹ in Crores
(i) Mixed-Income of Self Employed 3500
(ii) Net Indirect Taxes 300
(iii) Wages and Salaries ?
(iv) Government Final Consumption Expenditure 14000
(v) Net Exports 3000
(vi) Consumption of Fixed Capital 300
(vii) Net Factor Income from Abroad 700
(viii) Operating Surplus 12000
(ix) National Income 30000
(x) Profits 500
(xi) Gross Domestic Capital Formation  ?
(xii) Private Final Consumption Expenditure 11000

 

HARD
IMPORTANT
Economics>National Income Accounting>Macroeconomic Identities> Q 4

Given the following data, find the missing values of 'Private Final Consumption Expenditure' and 'Operating Surplus':

    (₹ in Crores)
(i) National Income  50000
(ii) Net Indirect Taxes 1000
(iii) Private Final Consumption Expenditure ?
(iv) Gross Domestic Capital Formation 17000
(v) Profits 1000
(vi) Government Final Consumption Expenditure 12500
(vii) Wages and Salaries 20000
(viii) Consumption of Fixed Capital 700
(ix) Mixed-Income of Self-Employed 13000
(x) Operating Surplus ?
(xi) Net Factor Income from Abroad 500
(xii) Net Exports 2000

 

HARD
IMPORTANT
Economics>National Income Accounting>Macroeconomic Identities> Q 5

Given the following data, find the missing value of 'Government Final Consumption Expenditure' and 'Mixed-Income of Self Employed':

    (₹in Crores)
(i) National Income 71000
(ii) Gross Domestic Capital Formation 10000
(iii) Government Final Consumption Expenditure ?
(iv) Mixed-Income of Self-Employed ?
(v) Net Factor Income from Abroad 1000
(vi) Net Indirect Taxes 2000
(vii) Profits 1200
(viii) Wages and Salaries 15000
(ix) Net Exports 5000
(x) Private Final Consumption Expenditure 40000
(xi) Consumption of Fixed Capital  3000
(xii) Operating Surplus 30000

 

HARD
IMPORTANT
Economics>National Income Accounting>Macroeconomic Identities> Q 6

Calculate (a) Operating Surplus, and (b) Domestic Income:

    (₹Crores)
(i) Compensation of employees 2000
(ii) Rent and interest 800
(iii) Indirect Taxes 120
(iv) Corporation Tax 460
(v) Consumption of fixed capital 100
(vi) Subsidies 20
(vii) Dividend 940
(viii) Undistributed profits 300
(ix) Net factor income to abroad 150
(x) Mixed income 200

 

HARD
IMPORTANT
Economics>National Income Accounting>Macroeconomic Identities> Q 7

Calculate (a) net national product at market price and (b) gross national disposable income:

    (₹Crores)
(i) Gross domestic fixed capital formation 400
(ii) Private final consumption expenditure 8000
(iii) Government final consumption expenditure 3000
(iv) Change in stock 50
(v) Consumption of fixed capital 40
(vi) Net indirect taxes 100
(vii) Net exports (-)60
(viii) Net factor income to abroad (-)80
(ix) Net current transfers from abroad 100
(x) Dividend 100

 

HARD
IMPORTANT
Economics>National Income Accounting>Macroeconomic Identities> Q 8

Calculate (a) National Income (b) net national disposable income:

    (₹Crores)
(i) Net Factor Income to abroad (-)50
(ii) Net indirect taxes 800
(iii) Net current transfers from the rest of the world 100
(iv) Net imports 200
(v) Private final consumption expenditure 5000
(vi) Government final consumption expenditure 3000
(vii) Gross domestic capital formation  1000
(viii) Consumption of fixed capital 150
(ix) Change in stock (-)50
(x) Mixed-income 4000
(xi) Scholarship to students 80

 

HARD
IMPORTANT
Economics>National Income Accounting>Macroeconomic Identities> Q 9

Calculate (a) net domestic product at factor cost and (b) gross national disposable income.

    (₹ Crores)
(i) Private final consumption expenditure 8000
(ii) Government final consumption expenditure 1000
(iii) Exports 70
(iv) Imports 120
(v) Consumption of fixed capital 60
(vi) Gross domestic fixed capital formation 500
(vii) Change in stock 100
(viii) Factor income to abroad 40
(ix) Factor income from abroad 90
(x) Indirect taxes 700
(xi) Subsidies 50
(xii) Net current transfers to abroad (-)30

 

EASY
IMPORTANT
Economics>National Income Accounting>Macroeconomic Identities> Q 10

How will you treat the following while estimating the domestic product of a country? Give reasons for your answer:

'Purchase of goods by foreign tourists.'

MEDIUM
IMPORTANT
Economics>National Income Accounting>Macroeconomic Identities> Q 11

How will you treat the following while estimating the domestic product of a country? Give reasons for your answer:

'Profits earned by branches of the country's bank in other countries.'

HARD
IMPORTANT
Economics>National Income Accounting>Macroeconomic Identities> Q 12

Find the net national product at market price and personal disposable income:

    (₹Crores)
(i) Personal taxes 200
(ii) Wages and salaries 1200
(iii) Undistributed profit 50
(iv) Rent 300
(v) Corporation Tax 200
(vi) Private Income 2000
(vii) Interest 400
(viii) Net Indirect Tax 300
(ix) Net Factor Income to abroad 20
(x) Profit 500
(xi) Social Security Contributions by employers 250

 

HARD
IMPORTANT
Economics>National Income Accounting>Macroeconomic Identities> Q 13

Find the net domestic product at factor cost and personal income:

    (₹ Crores)
(i) Rent 200
(ii) Net current transfers to abroad 10
(iii) National Debt Interest 60
(iv) Corporate Tax 100
(v) Compensation of employees 900
(vi) Current transfers by the government 150
(vii) Interest 400
(viii) Undistributed Profits 50
(ix) Dividend 250
(x) Net Factor Income to abroad (-)10
(xi) Income accruing to the government 120

 

HARD
IMPORTANT
Economics>National Income Accounting>Macroeconomic Identities> Q 14

Find the national income and the private income:

    (₹ Crores)
(i) Wages and salaries 1000
(ii) Net current transfers 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 the government 150
(ix) Rent 200
(x) Interest 300
(xi) Royalty 50

 

HARD
IMPORTANT
Economics>National Income Accounting>Macroeconomic Identities> Q 15

Find the gross value added at market price:

    (₹ Lakh)
(i) Depreciation 20
(ii) Domestic Sales 200
(iii) Net change in stocks (-)10
(iv) Exports 10
(v) Single-use producer goods 120

 

HARD
IMPORTANT
Economics>National Income Accounting>Macroeconomic Identities> Q 16

Find the net value added at market prices:

    (₹Lakh)
(i) Fixed Capital Good with a lifespan of five years 15
(ii) Raw materials 6
(iii) Sales 25
(iv) Net Change in the stock (-)2
(v) Taxes on Production 1

 

HARD
IMPORTANT
Economics>National Income Accounting>Macroeconomic Identities> Q 17

Find the net value added at factor cost:

  Particulars (₹Lakh)
(i) Durable use producer goods with a lifespan of ten years 10
(ii) Single use producer goods  5
(iii) Sales 20
(iv) Unsold output produced during the year 2
(v)  Taxes on production 1

 

HARD
IMPORTANT
Economics>National Income Accounting>Macroeconomic Identities> Q 18

Calculate 'Net Domestic Product at factor cost' and 'Gross National Disposable Income':

  Particulars (₹ Crores)
(i) Net Current Transfers to abroad 15
(ii) Private Final consumption expenditure 800
(iii) Net Imports (-)20
(iv) Net Domestic Capital Formation 100
(v) Net Factor Income to abroad 10
(vi) Depreciation 50
(vii) Change in Stocks 17
(viii) Net Indirect Tax 120
(ix) Government final consumption expenditure 200
(x) Exports 30

 

HARD
IMPORTANT
Economics>National Income Accounting>Macroeconomic Identities> Q 19

Calculate 'Gross National Product at the market price' and 'Net National Disposable Income':

  Particulars (₹Crores)
(i) Rent 100
(ii) Net Current transfers to the rest of the world 30
(iii) Social Security contribution by employers 47
(iv) Mixed-Income 600
(v) Gross Domestic Capital Formation 140
(vi) Royalty 20
(vii) Interest 110
(viii) Compensation of Employees 500
(ix) Net Domestic Capital Formation 120
(x) Net factor income from abroad (-)10
(xi) Net indirect Tax 150
(xii) Profit 200

 

HARD
IMPORTANT
Economics>National Income Accounting>Macroeconomic Identities> Q 20

Calculate the National income and Personal Disposable income:

  Particulars (₹Crores)
(i) Personal Tax 80
(ii) Private Final Consumption Expenditure 600
(iii) Undistributed Profits 30
(iv) Private Income 650
(v) Government final consumption expenditure 100
(vi) Corporate Tax 50
(vii) Net Domestic fixed capital formation 70
(viii) Net Indirect Tax 60
(ix) Depreciation  14
(x) Change in Stocks (-)10
(xi) Net Imports 20
(xii) Net Factor Income to abroad 10