Short Answer TypeCalculate “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
Explain “Banker to the Government” function of the Central Bank.
Central bank functions as a banker to the government - both central and state governments. It carries out all banking business of the government. Government keeps their cash balances in the current account with the central bank. Similarly, central bank accepts and makes payment on behalf of the government.
Also central bank carries out exchange, remittance, and other banking operations on behalf of the government. Central bank gives loans and advances to governments for temporary periods, as and when necessary and it also manages the public debt of the country. At the same time, central government can borrow any amount of money from RBI by selling its rupees and securities to the later.
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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