36 + Interview Questions in NATIONAL-INCOME-AND-RELATED-AGGREGATES IN GENERAL AWARENESS Page 1 InterviewSolution

1.	Calculate Consumption of Fixed Capital .
Answer» Correct Answer - Consumption of Fixed Capital = ₹ 3, 620 crores GDP at MP = NNP at FC + Consumption of Fixed Capital - Net Factor income from abroad + Net Indirect Tax It means : Consumption of Fixed Capital = GDP at MP - Net Indirect Tax + Net Factor income from abroad - NNP at FC = 5, 000 - 300 + 200 - 4, 000 = ₹ 900 crores

Discussion

2.	Classify the following as intermediate goods or final goods : Electricity consumption in a business.
Answer» Correct Answer - Intermediate goods

Discussion

3.	State whether the following statements are true of false. Give reasons for your answer : (a) Capital formation is a flow. (b) Bread is always a consumer good. Buuter is only a final product.
Answer» (a) True. Capital formation is measured over a period of time. (b) False. It depends on the use of bread. When it is purchased by a household, it is a consumer good. If it is purchased by hotel, it is a producer (intermediate) good. (c) False. It depends on the end use of butter. If it is purchased by a baker cakes, then it is an intermediate good.

Discussion

4.	Calculate Factor Income to abroad .
Answer» Correct Answer - Factor Income to abroad = ₹ 300 crores Note : Replacement of Fixed Capital is another name for Depreciation. GNP at MP = NDP at FC + Replacement of Fixed Capital + (Factor Income from abroad - Factor Income to abroad ) + (Indirect Taxes - Subsidies) It means : Factor Income to abroad = NDP at FC + Replacement of Fixed Capital + Factor Income from abroad + (Indirect Taxes - Subsidies ) - GNP at MP = 3, 900 + 100 + 700 (300 - 200)- 4, 500 = ₹ 300 crores

Discussion

5.	Calculate NDP at FC :
Answer» `NDP_(FC)=GNP_(MP)-" Depreciation "-NFIA-NIT` `NDP_(FC)=GNP_(MP)-" Depreciation "-"Net factor income from abroad"-{"Indirect tax- Subsidies"}` `=16,000-1,000-1400^()-{1,300-1,200}=13,500` `NDP_(FC)= Rs 13,500` lakh `.^()NFIA=" Factor income received from abroad"-"Factor income paid abroad"=1400-0=1400`

Discussion

6.	Calculate (a) Depreciation , (b) Subsidies , (c) NDP at FC.
Answer» Correct Answer - (a) Depreciation = ₹ 7 , 000 crores ; (b) Subsidies = ₹ 2 , 000 crores ; (c) NDP at FC = ₹ 88 , 422 crores . (a) Depreciation = GNP at MP - NNP at MP = 1, 07 , 000 - 1, 00, 000 = ₹ 7 , 000 crores (b) Subsidies = GNP at FC - GNP at MP + Indirect Tax = 95 , 000 - 1, 07 , 000 + 14, 000 = ₹ 2 , 000 crores (c) NDP at FC = NDP at MP - (Indirect Tax - Subsidies ) = 1, 00, 422 - (14 , 000 - 2, 000) = ₹ 88 , 422 crores

Discussion

7.	Find `GDP_(FC)` from the following data :
Answer» `GDP_(FC)=GNP_(MP)-NFIA-NIT` `=GNP_(MP)-("Factor income received from abroad"-"Factor income paid abroad")-NIT` `=500-(300-100)-20=500-200-20= Rs 280` crore

Discussion

8.	Calculate `N NP_(MP)` from the following :
Answer» `N NP_(MP)=GDP_(MP)-"depreciation"+NFIA` `=50,000-5,000+(-1,000)` `N NP_(MP)= Rs 44,000`

Discussion

9.	Calculate National income or NNP at FC .
Answer» Correct Answer - NNP at MP = ₹ 5,050 crores National Income or NNP at FC = GDP at MP - 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

Discussion

10.	Find `NDP_(FC)`
Answer» `NDP_(FC)=GNP_(MP)-"Depreciation"-NFIA-NIT` `=GNP_(MP)-"Depreciation"-("factor income received from abroad"-"Factor income paid abroad")-("Indirect taxes"-"Subsidies")` `=14,000-600-(400-500)-(1000-200)` `NDP_(FC)= Rs 12,700` crore

Discussion

11.	Calculate Domestic Income or NDP at FC.
Answer» Correct Answer - NDP at FC = ₹ 5 , 400 crores NDP at FC = ₹ 5,4 00 crores NDP at FC = GNP at MP - Depreciation - Net Factor income from abroad - {Indirect tax - Subsidies } = `6,000 - 100 - 400 - {300 -200} `= ₹ 5, 400 crores The solution of Example 1 can also be presented as : (i) - (iii) - (iv) - {(v) - (ii)} = 6, 000 - 100 - 400 - { 300 - 200} = ₹ 5,400 crores

Discussion

12.	Find out `NDP_(MP)` from given data :
Answer» `NDP_(MP)=GNP_(MP)-"Consumption of fixed capital"-NFIA` `=97,503-5,699-(-)201` `NDP_(MP)= Rs 92,005` crore

Discussion

13.	Define national income `(N NP_(FC))`.
Answer» It id the value added (NVA) of all final goods and services produced by the normal residents of a country (factors of production) during a period of one year. It includes NFIA.

Discussion

14.	Define domestic income `(NDP_(FC))`.
Answer» It refers to the net value added (NVA) of all the final goods and services produced within the domestic territory of a country earned by factors of production during a period of one year.

Discussion

15.	Identify the domestic territory of India : 1. Indian embassy in Australia. 2. Branch of American bank in India. 3. American embassy in India 4. Branch of an indian company in London. 5. Indian consulates in France. 6. Branch of State Bank of India in France. 7. Indian Military forces sent to maintain peace in Syria. 8. Microsoft office in India.
Answer» domestic territory : 1, 2, 5, 7, 8

Discussion

16.	Classify the following as factor income or transfer income Taxes paid to government.
Answer» Correct Answer - Transfer income

Discussion

17.	Classify the following as factor income or transfer income Old age pension received by public.
Answer» Correct Answer - Transfer income

Discussion

18.	Suppose in an imaginary economy, GDP at Market Price in a particular fiscal year was Rs. 4,000 crores, National Income was Rs. 2,500 crores, Net Factor Income paid by the economy to Rest of the World was Rs. 400 crores and the value of Net Indirect Taxes is Rs. 450 Crores. Estimate the value of consumption of fixed capital for the economy from the given data.
Answer» Depreciation/`CFC=GDP_(MP)-NDP_(MP)` `NDP_(MP)=N NP_(FC)-NFIA+NIT` `=2500-(-400)+450=2500+400+450=3350` Depreciation `=4000-3350=Rs. 650` Crore. Or `N NP_(FC)=GDP_(MP)-"Depreciation"-"Net factor income paid abroad"-NIT` `2500=4000-"Depreciation"-400-450` `2500=4000-850-"Depreciation"` Depreciation `=3150-2500` Depreciation = Rs. 650 Crore

Discussion

19.	Classify the following as factor income or transfer income Dearness alloweance added to basic salary of an employee.
Answer» Correct Answer - Factor income

Discussion

20.	Classify the following as factor income or transfer income Salaryreceived by an employee of State Bank of India.
Answer» Correct Answer - Factor income

Discussion

21.	Classify the following as factor income or transfer income Financial help to victims of Uttrakhand tragedy.
Answer» Correct Answer - Transfer income

Discussion

22.	GST was introduced in Indian economy in :A. 2008B. 2010C. 2015D. 2017
Answer» Correct Answer - D

Discussion

23.	Unforeseen obsolescene of fixed capital assets during production is : (Chose the correct alternate)A. Consumption of fixed capitalB. Capital lossC. Income lossD. None of the above.
Answer» Correct Answer - B

Discussion

24.	Depreciation of fixed capital assets refers to :A. Normal wear and tearB. Foreseen obsolescenceC. Normal wear and tear and foreseen obsolescenceD. unforeseen obsolescence
Answer» Correct Answer - C

Discussion

25.	Classify the following as intermediate goods or final goods : Furniture purchased by a school
Answer» Correct Answer - Final goods

Discussion

26.	Classify the following as intermediate goods or final goods : Chemical fertilizers used by the farmers.
Answer» Correct Answer - Intermediate goods

Discussion

27.	Classify the following as intermediate goods or final goods : Machine purchased for installation in a factory.
Answer» Correct Answer - Final goods

Discussion

28.	Classify the following as intermediate goods or final goods : Coal purchased by a factory.
Answer» Correct Answer - Intermediate goods

Discussion

29.	Classify the following as intermediate goods or final goods : Chalks dusters etc. purchased by a school.
Answer» Correct Answer - Intermediate goods

Discussion

30.	Classify the following as intermediate goods or final goods : Textbook purchased by a student.
Answer» Correct Answer - Final goods

Discussion

31.	Classify the following as intermediate goods or final goods : Books purchased by a book seller.
Answer» Correct Answer - Intermediate goods

Discussion

32.	Classify the following as intermediate goods or final goods : Expenditure on research and development by a company.
Answer» Correct Answer - Intermediate goods

Discussion

33.	Classify the following as intermediate goods or final goods : Purchase of sugar by a grocery shop.
Answer» Correct Answer - Intermediate goods

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34.	Classify the following as intermediate goods or final goods : Cloth used by a tailor.
Answer» Correct Answer - Intermediate goods

Discussion

35.	Classify the following as intermediate goods or final goods : Milk purchased by households.
Answer» Correct Answer - Final goods

Discussion

36.	Classify the following as intermediate goods or final goods : Construction of houses by the consumer households.
Answer» Correct Answer - Final goods

Discussion

Explore topic-wise InterviewSolutions in .

Calculate Consumption of Fixed Capital .

Classify the following as intermediate goods or final goods : Electricity consumption in a business.

State whether the following statements are true of false. Give reasons for your answer : (a) Capital formation is a flow. (b) Bread is always a consumer good. Buuter is only a final product.

Calculate Factor Income to abroad .

Calculate NDP at FC :

Calculate (a) Depreciation , (b) Subsidies , (c) NDP at FC.

Find `GDP_(FC)` from the following data :

Calculate `N NP_(MP)` from the following :

Calculate National income or NNP at FC .

Find `NDP_(FC)`

Calculate Domestic Income or NDP at FC.

Find out `NDP_(MP)` from given data :

Define national income `(N NP_(FC))`.

Define domestic income `(NDP_(FC))`.

Classify the following as factor income or transfer income Taxes paid to government.

Classify the following as factor income or transfer income Old age pension received by public.

Classify the following as factor income or transfer income Dearness alloweance added to basic salary of an employee.

Classify the following as factor income or transfer income Salaryreceived by an employee of State Bank of India.

Classify the following as factor income or transfer income Financial help to victims of Uttrakhand tragedy.

GST was introduced in Indian economy in :A. 2008B. 2010C. 2015D. 2017

Unforeseen obsolescene of fixed capital assets during production is : (Chose the correct alternate)A. Consumption of fixed capitalB. Capital lossC. Income lossD. None of the above.

Depreciation of fixed capital assets refers to :A. Normal wear and tearB. Foreseen obsolescenceC. Normal wear and tear and foreseen obsolescenceD. unforeseen obsolescence

Classify the following as intermediate goods or final goods : Furniture purchased by a school

Classify the following as intermediate goods or final goods : Chemical fertilizers used by the farmers.

Classify the following as intermediate goods or final goods : Machine purchased for installation in a factory.

Classify the following as intermediate goods or final goods : Coal purchased by a factory.

Classify the following as intermediate goods or final goods : Chalks dusters etc. purchased by a school.

Classify the following as intermediate goods or final goods : Textbook purchased by a student.

Classify the following as intermediate goods or final goods : Books purchased by a book seller.

Classify the following as intermediate goods or final goods : Expenditure on research and development by a company.

Classify the following as intermediate goods or final goods : Purchase of sugar by a grocery shop.

Classify the following as intermediate goods or final goods : Cloth used by a tailor.

Classify the following as intermediate goods or final goods : Milk purchased by households.

Classify the following as intermediate goods or final goods : Construction of houses by the consumer households.