Explore topic-wise InterviewSolutions in Current Affairs.

Current transfers are those transfers which are paid from current income and are added in current income of recipient.

Green GNP would help to attain sustainable use of the natural resources and equitable distribution of the benefits of development.

Income earned by a factor of production i.e. in form of Rent, wages, interest and profit, in the process of production.  

It is that part of the personal income which is available to the households for expenditure.

Normal resident of a country is that person or institution whose centre of economic interest lies in that country.

It is defined as the difference between total value of output of a firm and value of inputs bought from others. 

Operating surplus.

It is defined as current income of persons or household from all sources. 

Economic territory means that geographical territory administrated by a Govt. within which persons, goods and capital circulates freely. 

Housing services are productive. Therefore imputed rent of owner-occupied houses forms a part of national income.  

When national income is measured on market prices, it is called national income at current prices.

The portion of the income which is not spent on consumption and kept for the future is, called savings.

When subsidies are more than indirect taxes.

When national income is measured at a base year’s price, it is called national base (real national income) on fixed prices.

The goods or inputs which get used up in producing other goods or are meant for resale are called intermediate goods/ inputs.  

(i) Undistributed profit, 

(ii) corporation tax, 

(iii) dividends. 

It decreases in the value of fixed capital due to normal wear and tear and foreseen obsolescence.

It is the sector which produces goods by exploiting natural resources like land, water, mines, forests etc.

The main components of operating surplus :

(i) Rent 

(ii) Interest 

(iii) Profit 

(c) Net National Product= Total National Product – Depreciation Expenses

In the production process, the owners of the means of production receive the income in lieu of their services. This is are called Factor income.

Expenditure incurred on final goods and services is called final expenditure. 

Rent is the amount that a tenant gives to the owner in exchange for the use of a house, shop, land, machine, etc.

Central Statistical Organization (C. S. O.)

(a) When net current transfer from abroad are Zero.

(b) When Net Factor Income from abroad is negative.

(c) When intermediate consumption is Zero.

If the government raises its expenditure on producing public goods, it reflects that government is serving the objective of social welfare. Public goods are those goods which satisfy collective consumption needs i.e., health, education, fresh air, civic amenities etc. When government raises its expenditure on public goods, residents of a country are benefitted by being provided with these basic amenities. Healthy and educated people are more efficient which can lead to increase in GDP in future too. 

Thus, it will improve the overall quality of life of the people in the country.

For the purpose of reducing the price of an item, the grant that the government provides to the producers is called subsidy.

The sum remaining after deducting direct taxes from personal income and further deducting the payments made to the government, is called disposable income.

The income received by sources of production within the domestic boundaries of a country is known as domestic factor income.

Per capita income is obtained by dividing total national income by the total population. It is also called the average income of the economy.

According to the Formula:

Per Capital Income (PCl) = Total National income/Total Population.

Net factor income from abroad is added to domestic factor income to obtain national income.

Net factor income from abroad

When per capita income is measured from real GDP (measured at constant price) is called per capita real GDP.

It is the income, which is available to the whole economy for spending or disposal NNP_Mp + net current transfers from abroad = NDI

 (i) National income = Domestic income + Net factor income from Abroad. 

(ii) Personal income = Private income – Corporate tax – Undistributed profit. 

(iii) Net value added at FC = Gross output – Intermediate Consumption – depreciation – Net Indirect tax

When net factor income from abroad is zero. 

When price of tea increases, demand for sugar will tend to decrease.

Primary Deficit-The difference between the fiscal deficit and interest payment is termed as Primary Deficit. 

Primary Deficit = Fiscal Deficit - Interest Payments.

Revenue Deficit-When revenue receipts are less than the revenue expenditures in a government budget, this short fall is termed as Revenue Deficit. 

Revenue Deficit = Revenue Expenditure - Revenue Receipts.

When the net factor income from abroad is negative. 

According to the Croxton and Cowden correlation is defined as “when the relationship is of a quantitative nature the appropriate statistical tool for discovering and measuring the relationship and expressing it in a brief formula is shown as correlation’’.

No, they do not

GNP MP  = [Value of output in primary sector – value of intermediate consumption in primary sector] + [Value of output in secondary sector – value of intermediate consumption in secondary sector] + [Value of output in Teritiary – value of intermediate consumption in Teritiary sector] + Net factor income from abroad.

= [2000 – 800] + [1900 – 700] + [2200 – 1500] + (–) 40 

= 1200 + 1200 + 700 – 40 

= 3100 – 40 

= 3060 Rs. Crores. 

Exchange: 

It refers to the worth of a commodity or a service expressed in terms of a commodity. In the above case farmer exchanges rice i.e. commodity for cash.

Utility: 

The utility is a power of a commodity or service which satisfies human want. In this case, water has utility, as it satisfies the thirst of people.

Yes, we have enjoyed this poem be-cause there is only happiness expressed.

(i) + (iii) + (iv) + (v) + (ix) - (vii) + (viii) - (vi)

GNP_MP = 750+250+200+10-(-20)+50-(-40)

=Rs.1,320 crore

(ii) Net Current Transfers = NNDI-NNP_MP

from Abroad= 1,100-(1,320-50)

=Rs.(-)170 crore 

The normal resident of a country earn income from abroad and income is paid to non-residents for their factor services within the domestic territory. The difference between these two is net factor income from abroad. 

Components : 

(1) Net compensation of employees. 

(2) Net income from property and entrepreneurship. 

(3) Net retained earning of resident companies from abroad. 

The two people in the first stanza are the child in the cloud and William Blake, the piper, They are happy. The child in the cloud was laughing and asked the piper piping happy songs to pipe a song.

No, they do not.

The narrow lane and the broad and fiery street was dusty and hot. The rain clatters along the roofs and gushes out through the spouts. It cols the weather and drives away the dust and heat.