Tag: economics

Questions Related to economics

In Dx$=$f(Px, T, Y)Y is?

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

  1. Income level of consumer

  2. Tastes of consumer

  3. Quantity of demand of goods

  4. None of the above

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Correct Option: A

Personal income distribution is relatively ___________________.

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

  1. More unequal in urban areas than in rural areas

  2. More equal in urban areas than in rural areas

  3. More or less the same in rural and urban areas

  4. More unequal in rural areas than in urban areas

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Correct Option: A

Which of these is/are not included in net domestic product at factor cost?

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

  1. Wages or compensation of employees

  2. Rent, interest, profit or operating surplus

  3. Mixed income

  4. None of the above

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Correct Option: D

For most economies which of these statement is true?

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

  1. National income accounts and national output accounts are equal to each other.

  2. Estimation of national income is just impossible

  3. National output is less than national Income

  4. National income is less than national output

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Correct Option: A

GNP at MP=Rs. 99,000 Net factor income abroad=(-) 560
Capital consumption allowance= Rs. 6100, Net indirect tax=Rs. 8470
From the above, estimate of GNP at factor cost.

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

  1. Rs. 90,530

  2. Rs. 91,000

  3. Rs. 89,990

  4. Rs. 93,100

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Correct Option: A

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

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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