What is the difference between direct tax and indirect tax? Explain the role of government budget in influencing allocation of resources.

Given saving curve, derive consumption curve and state the steps in doing so. Use diagram.

Indian investors lend abroad. Answer the following questions:
(a) In which sub-account and on which side of the Balance of Payments Account such lending is recorded? Give reasons.
(b) Explain the impact of the lending on market exchange rate.

34. Find Gross National Product at Market Price and Private Income:  (Rs in crore)
(i) Private final consumption expenditure                                      800
(ii) Net Current transaction to abroad                                            20
(iii) Net factor income to abroad                                                  (-) 10
(iv) Government final consumption expenditure                             300
(v) Net indirect tax                                                                     150
(vi) Net domestic capital formation                                              200
(vii) Current transfer to government                                            40
(viii) Depreciation                                                                      100
(ix) Net imports                                                                         30
(x) Income accruing to government                                            90
(xi) National debt interest                                                           50