Tag: some macroeconomic identities

Questions Related to some macroeconomic identities

Given personal income of Rs.7510, personal income tax of Rs.410, Consumption being Rs. 5000, Personal saving will be _______.

economics circular flow of income and methods of calculating national income some macroeconomic identities national income accounting national income aggregates

  1. Rs.7000

  2. Rs.6890

  3. Rs.2100

  4. Rs.6700

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Correct Option: C

Given personal income of Rs.7510, personal income tax of Rs. 410, Consumption being Rs. 5000, Personal saving being Rs. 2100. Find the disposal income.

economics circular flow of income and methods of calculating national income some macroeconomic identities national income accounting national income aggregates

  1. Rs. 7000

  2. 6890

  3. Rs. 7100

  4. Rs. 6700

Show answer
Correct Option: C

______ is the personal income minus personal income tax and miscellaneous payments to government.

economics circular flow of income and methods of calculating national income some macroeconomic identities national income accounting national income aggregates

  1. Surplus income

  2. Disposable income

  3. Expendable income

  4. Residual income

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Correct Option: B
Explanation:

Disposable income refers to the income which is freely available to the disposal of the individual. The gap between the personal income of an individual and disposal income is due the taxes and other payments made to the government on the personal income earned. 
Symbolically: ${\text{Disposable Income = Personal Income - Taxes and other payments made to the government on the personal income}}$ 

Given personal income of Rs.8000, personal income tax of Rs.1200, Consumption Rs. 5000, Personal saving is equal to ______.

economics circular flow of income and methods of calculating national income some macroeconomic identities national income accounting national income aggregates

  1. Rs.2000

  2. Rs.2400

  3. Rs.2900

  4. Rs.1800

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Correct Option: D

The major difference between personal income and disposal income is _______.

economics circular flow of income and methods of calculating national income some macroeconomic identities national income accounting national income aggregates

  1. indirect tax

  2. direct taxes

  3. savings

  4. investment

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Correct Option: B

If there is a simultaneous fall in consumers disposal income as well as number of suppliers of a product in the market, the _________.

economics circular flow of income and methods of calculating national income some macroeconomic identities national income accounting national income aggregates

  1. equilibrium quantity will decrease

  2. equilibrium price will decrease

  3. equilibrium price will go up

  4. equilibrium quantity will increase

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Correct Option: A

From the following equation estimate disposal income (Y) when consumption (C) is Rs. 910.
C=Rs. 160+0.75Y$ _d$

economics circular flow of income and methods of calculating national income some macroeconomic identities national income accounting national income aggregates

  1. Rs. 1100

  2. Rs. 900

  3. 1000

  4. 800

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Correct Option: C

From the following equation estimate Income (Y) consumption is Rs.1000 is _______.
C=Rs. 200+0.80Y$ _d$

economics circular flow of income and methods of calculating national income some macroeconomic identities national income accounting national income aggregates

  1. Rs. 1000

  2. Rs. 1100

  3. Rs. 900

  4. Rs. 800

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Correct Option: A

From the following equation estimate disposal income (Y) when consumption C=is Rs. 760 is ________.
C=Rs. 160+0.75Y$ _d$

economics circular flow of income and methods of calculating national income some macroeconomic identities national income accounting national income aggregates

  1. Rs. 1000

  2. Rs. 900

  3. Rs. 800

  4. Rs. 750

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Correct Option: C

From the following equation estimate disposal income (Y) when consumption C=is Rs. 1000 is _______.
C=Rs. 150+0.85Y$ _d$

economics circular flow of income and methods of calculating national income some macroeconomic identities national income accounting national income aggregates

  1. Rs. 1000

  2. Rs. 800

  3. Rs.900

  4. 1100

Show answer
Correct Option: B