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1.

Define domestic income OR Define domestic product .

Answer» Correct Answer - Domestic income `(NDP_(FC))` 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.
Discussion
2.

Which of the following flowchart correctly represents the relationship between Domestic concepts ?A. B. C. D.

Answer» Correct Answer - C
Discussion
3.

Purchase of refrigerator by a restaurant is :A. Consumption expenditure on durable goodB. Consumption expenditure on non-durable goodC. Intermediate expenditureD. Final expenditure

Answer» Correct Answer - D
Discussion
4.

A firm hires the services of a chartered accountant and pays fees. For the firm, payment of fees is :A. Final expenditureB. Intermediate expenditureC. Investment expenditureD. Capital expenditure

Answer» Correct Answer - B
Discussion
5.

Calculate GNP at FC.

Answer» Correct Answer - GNP at FC = ₹ 75, 920 Crores
Discussion
6.

In which type of economy , domestic income is equal to national income ?A. Open EconomyB. Closed EconomyC. Both (a) and (b)D. Neither (a) nor (b)

Answer» Correct Answer - B
Discussion
7.

Calculate Domestic Income .

Answer» Correct Answer - Domestic Income = ₹ 2, 580 Crores
Discussion
8.

If factor income received from abroad is equal to factor income paid abroad , then which of the following is not a valid statement ?A. National Income = Domestic IncomeB. `NDP_(FC) ` + Depreciation = `GNP_(FC)`C. `NDP_(FC)` + Depreciation = `GNP_(MP)`D. All are valid

Answer» Correct Answer - C
Discussion
9.

Mention the situations in which following equations will hold true: (i) National Income = Domestice Income (ii) `GDP_(FC) gt GDP_(MP)` (iii) `NNP_(FC) lt NDP_(FC)` (iv) `GDP_(FC) = GDP_(MP)` (v) Domestic Income is greater than National Income.

Answer» Correct Answer - (i) When net factor income from abroad is zero.
(ii) When subsidies are more than indirect taxes.
(iii) When factor income paid abroad is more than factor income received from abroad.
(iv) When net indirect taxes is zero.
(v) When net factor income from abroad is negative.
Discussion
10.

Calculate (a) Domestic Income , (b) National Income .

Answer» Correct Answer - (a) ₹ 65 , 850 Crores ; (b) ₹ 66, 350 Crores
Discussion
11.

Determine the missing items in the following cases : (i) `GNP_(FC) = GNP_(MP)`- ? (ii) ? = National Income - Domestic Income (iii) `GDP_(FC)` = ? + Depreciation (iv) `NDP_(FC) = ?` - Depreciation - Net Indirect Tax

Answer» Correct Answer - (i) Net Indirect Taxes ; (ii) Net Factor Income from Abroad; (iii) `NDP_(FC)`; (iv) `GDP_(MP)`
Discussion
12.

Calculate Factor Income to abroad .

Answer» Correct Answer - Factor Income to abroad = ₹ 280 Crores
Discussion
13.

Capital at the end of year 2012 was Rs. 100 crore and at the end of the year 2013 was Rs. 110 crore. Depreciation during the year 2013 was Rs. 5 crore. Gross investment during 2013 is :A. Rs. 5 croreB. Rs. 10 croreC. Rs. 15 croreD. Rs. 110 crore

Answer» Correct Answer - B
Discussion
14.

`"GDP"_(mp)` is :A. Inclusive of depreciationB. Inclusive of indirect taxC. Exclusive of subsidiesD. All the above

Answer» Correct Answer - D
Discussion
15.

Calculate National Income or NNP at FC .

Answer» Correct Answer - National Income = ₹ 4, 440 Crores
Discussion
16.

Calculate Indirect Taxes from the following data :

Answer» Correct Answer - Indirect Taxes = ₹ 2, 590 Crores
Discussion
17.

Define the following terms : (i) `GDP_(MP)` , (ii) `NDP_(FC)` , (iii) `NNP_(MP)`

Answer» Correct Answer - (1) GDP at MP(gross domestic product at market price ) is the sum of the gross value added of the gross values added of all resident producers at market price, plus taxes less subsidies on product(2)NDP at FC(Net domestic product at factor cost) is the income earned by the factors in the form of wages , profit, rent , interest etc. within the domestic territory of a country.(3) NNP at MP ( Net national income at market price ) is the market value of the output of final goods and services produced by normal residents of an economy in its domestic territory an accounting year exclusive of depreciation and inclusive of net factor income from abroad.
Discussion
18.

Given `"GDP"_(mp) = 100`, subsidies = 5k and depreciation = 10, then `"NDP"_(fc)` equals:A. 95B. 100C. 105D. 115

Answer» Correct Answer - A
Discussion
19.

If `NDP_(FC)` is ₹ 1, 000 crores and NFIA is `(-)` ₹ 5 crores , how much will be the national income ?

Answer» Correct Answer - National income = `1000 + (-5)` = ₹ 995 crores
Discussion
20.

If economic subsidies are added to and indirect taxes are subtracted from the national income at market prices , then it will be equal to :A. Domestic IncomeB. National IncomeC. Gross national product at market pricesD. Gross domestic product at factor cost

Answer» Correct Answer - B
Discussion
21.

If net national products is given at Market Prices , we `"____"` indirect taxes and `"________"` subsidies to get National income of the economy.A. Add , SubtractB. Add , DivideC. Subtract , AddD. Subtract , Divide

Answer» Correct Answer - C
Discussion
22.

If the domestic factor income is ₹ 200 crores and the national income is ₹ 190 crores , how much will be the net factor income from abroad ?

Answer» Correct Answer - Net factor income from abroad = `190 - 200 = (-)10 crores
Discussion
23.

Calculate Subsidies .

Answer» Correct Answer - Subsidies = ₹ 2 , 100 Crores
Discussion
24.

Gross National Product at market prices of an economy is ₹ 65 , 000 crores . The capital stock of the economy is valued at ₹ 1, 20 , 000 crores , which depreciates at the rate of `10%` per annum . Indirect taxes amount to ₹ 6, 000 crores and subsidies amount to ₹ 1, 000 crores . Estimate National Income of the economy.

Answer» Correct Answer - National Income = ₹ 48 , 000 Crores
Discussion