1.

(a) Is it true to say that "capital formation is a stock variable"? (b) Find National Income from the following data: (Rs.Crore)(i) Direct purchases of households from domestic market1,000(ii) Plant and machinery purchased2,500(iii) Residential construction1,550(iv) Investments by Government1,550(v) Exports by Firms700(vi) Inventory investment400(vii) Net factor income to abroad(−)40(viii) Depreciation150(ix) NIT(−)20(x) Imports by households200 OR Will the following be a part of domestic factor income of India? Give reasons: (i) Laptops purchased for office work (ii) Profits earned by the Indian company located abroad (iii) Construction of a residential building (iv) School fees paid

Answer»

(a) Is it true to say that "capital formation is a stock variable"?

(b) Find National Income from the following data:

(Rs.Crore)(i) Direct purchases of households from domestic market1,000(ii) Plant and machinery purchased2,500(iii) Residential construction1,550(iv) Investments by Government1,550(v) Exports by Firms700(vi) Inventory investment400(vii) Net factor income to abroad()40(viii) Depreciation150(ix) NIT()20(x) Imports by households200

OR

Will the following be a part of domestic factor income of India? Give reasons:

(i) Laptops purchased for office work

(ii) Profits earned by the Indian company located abroad

(iii) Construction of a residential building

(iv) School fees paid



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