Duration: 2hrs TEST M.M. =50
Q1) Explain the precautions to be taken while calculating national income by
expenditure method. (6)
Q2) What do you mean by externalities? How do the negative externalities affect
the welfare of the people? Explain with example. (6)
Q3) How will you treat the following while estimating the national income of India
(8)
a) Services of owner occupied house
b) Gifts from relative.
c) Commission received from sale of second hand goods.
d) Profit earned by a company in India which is owned by a non-resident.
Q4) Find GNPmp by income and expenditure method (6)
a) Personal consumption expenditure – 700
b) Wages and salaries – 680
c) Contribution to social security scheme – 400 (25% by employer)
d) Gross business fixed investment -60
e) Inventory investment – 20
f) Profit – 100
g) Government purchase of goods and services – 200
h) Rent – 50
i) Net imports – (-)20
j) Gross residential construction investment – 70
k) Interest – 40
l) Mixed income – 100
m) Net factor income to abroad – 10
n) Depreciation – 30
o) Gross public investment – 40
p) Net indirect taxes – 10
Q5) Distinguish between factor incomes and transfer income. Give an example of
each. (4)
Q1) Explain the precautions to be taken while calculating national income by
expenditure method. (6)
Q2) What do you mean by externalities? How do the negative externalities affect
the welfare of the people? Explain with example. (6)
Q3) How will you treat the following while estimating the national income of India
(8)
a) Services of owner occupied house
b) Gifts from relative.
c) Commission received from sale of second hand goods.
d) Profit earned by a company in India which is owned by a non-resident.
Q4) Find GNPmp by income and expenditure method (6)
a) Personal consumption expenditure – 700
b) Wages and salaries – 680
c) Contribution to social security scheme – 400 (25% by employer)
d) Gross business fixed investment -60
e) Inventory investment – 20
f) Profit – 100
g) Government purchase of goods and services – 200
h) Rent – 50
i) Net imports – (-)20
j) Gross residential construction investment – 70
k) Interest – 40
l) Mixed income – 100
m) Net factor income to abroad – 10
n) Depreciation – 30
o) Gross public investment – 40
p) Net indirect taxes – 10
Q5) Distinguish between factor incomes and transfer income. Give an example of
each. (4)
