Short Answer TypeDistinguish between balance of trade and balance on current account.
| Basis of Difference | Balance of Trade | Balance on Current Account |
| Meaning | Balance of Trade is the record of visible transactions of the country. | It is a record of the visible as well as invisible and unilateral transactions. |
| Components | It is the balance of exports and imports of all physical goods of the country. | It is the balance of visible trade, invisible trade and unilateral transfers. |
| Nature of transactions | It records the transactions relating to physical goods only. | It records the transactions relating to goods, services as well as unilateral transactions. |
Calculate “sales” from the following data:
| S.No | Particulars | (Rs in lakhs) |
| (i) | Net Value added at factor cost | 560 |
| (ii) | Depreciation | 60 |
| (iii) | Change in stock | (-) 30 |
| (iv) | Intermediate cost | 1000 |
| (v) | Exports | 200 |
| (vi) | Indirect taxes | 60 |
Giving reasons categorize the following into stock and flow:
(i) Capital
(ii) Saving
(iii) Gross domestic product
(iv) Wealth
Long Answer TypeC = 100 + 0.4 Y is the Consumption Function of an economy where C is Consumption Expenditure and Y is National Income. Investment expenditure is 1,100. Calculate
(i) Equilibrium level of National Income.
(ii) Consumption expenditure at equilibrium level of national income.
Complete the following table:
| Income (Rs) | Consumption expenditure (Rs) | Marginal Propensity to Save | Average Propensity to Save |
| 0 | 80 | ||
| 100 | 140 | 0.4 | - |
| 200 | - | - | 0 |
| - | 240 | - | 0.20 |
| - | 260 | 0.8 | 0.35 |
Calculate National Income from the following data:
| S.No. | Particulars | (Rs in crores) |
| (i) | Private final consumption expenditure | 900 |
| (ii) | Profit | 100 |
| (iii) | Government final consumption expenditure | 400 |
| (iv) | Net indirect taxes | 100 |
| (v) | Gross domestic capital formation | 250 |
| (vi) | Change in stock | 50 |
| (vii) | Net factor income from abroad | (-) 40 |
| (viii) | Consumption of fixed capital | 20 |
| (ix) | Net imports | 30 |
|
S.NO. |
Particulars |
(Rs in Crores) |
|
1
2
3
4
5
6
7
|
Gross domestic product at Market price
Net current transfers to the rest of the world Net indirect tax
Net factor income to abroad
National debt interest
Consumption of fixed capital
Current transfers from government |
2,000
(-)200
150
60
70
200
150 |
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