3M Chapter macro economics
Question 1
Calculate the domestic income or NDP at FC.
| Particulars | ₹ in crores |
| GNP at MP Subsidies Depreciation Net Factor income from abroad Indirect Tax | 6,000 200 100 400 300 |
Calculate GNP at MP
| Particulars | ₹ in crores |
| Domestic Income or NDP at FC Depreciation Indirect Taxes Net Factor income to abroad | 3,200 400 70 50 |
Question 3
Calculate national income or NNP at FC
| Particulars | ₹ in crores |
| GDP at MP Consumption of fixed capital Goods and services tax Factor income from abroad Subsidies Factor income to abroad | 5,500 300 120 150 70 250 |
Question 4
Define domestic income.
Question 5
When will the GDP of an economy be equal to the GNP?
Question 6
In which type of economy will the domestic income be equal to the national income?
Question 1
Calculate the domestic income or NDP at FC.
| Particulars | ₹ in crores |
| GNP at MP Subsidies Depreciation Net Factor income from abroad Indirect Tax | 6,000 200 100 400 300 |
Solution:
NDP at FC
= GNP at MP- Depreciation-Net Factor income from abroad- (Indirect tax-Subsidies)
= 6,000-100-400- (300-200)
= ₹ 5,400 crores
Question 2
Calculate GNP at MP
| Particulars | ₹ in crores |
| Domestic Income or NDP at FC Depreciation Indirect Taxes Net Factor income to abroad | 3,200 400 70 50 |
Solution:
GNP at MP
= NDP at FC + Depreciation – Net Factor income from abroad + Indirect tax
=3,200 + 400-50 + 70
= ₹3,620 crores
Question 3
Calculate national income or NNP at FC
| Particulars | ₹ in crores |
| GDP at MP Consumption of fixed capital Goods and services tax Factor income from abroad Subsidies Factor income to abroad | 5,500 300 120 150 70 250 |
Solution:
National Income or NNP at FC
= GDP at MP -M Consumption of fixed capital + (Factor income from abroad – factor income to abroad) – (Goods and Services tax – Subsidies)
=5,500 – 300 + (150-250) – (120-70)
= ₹ 5,050 crores
Question 4
Define domestic income.
Ans: Domestic income is the net money value of all the final goods and services produced within the domestic territory of a country during a period of one year.
Question 5
When will the GDP of an economy be equal to the GNP?
Ans: GDP and GNP will be equal when the net factor income from abroad is zero
Question 6
In which type of economy will the domestic income be equal to the national income?
Ans: Closed economy
