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Circular Flow Of Income Free Doubts and Solutions

CBSE - XII Commerce - Macroeconomics - National Income Accounting

What is meant by externality?

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

Define Net Domestic Product at market price (NDPMP).

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

Define Net National Product at factor cost (NNPFC).

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

What are the components of net factor income from abroad?

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

Will the following items listed below be included in the domestic factor income of India? a. Profits earned by a resident of India from a company in abroad b. Profits earned by a company in India which is owned by a non-resident

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

Will the following items listed below be included in the estimation of national income? i. Payment of income tax by a firm ii. Contribution to provident fund by the employers iii. Profits earned by a branch of Indian bank in abroad iv. Interest received on debentures

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

Factors of production within the domestic territory determine domestic factor of income. Justify.

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

Differentiate between retirement pensions and old age pensions in the context of estimation of national income.

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

What are factor incomes?

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

What are the methods that help us to avoid double counting in the estimation of national income?

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

Explain the factor income to abroad and factor income from abroad.

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

What is meant by transfer payment?

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

Distinguish between personal disposable income and national disposable income.

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

Distinguish between nominal national income and real national income.

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

Mention the two basic components of personal disposal income.

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

What is the difference between domestic income (NDPFC) and national income (NNPFC) in terms of factor incomes?

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

When is gross national product (GNP) lesser than the gross domestic product (GDP)?

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

Gross domestic product of an economy equal to its gross national product? How?

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

What is meant by domestic income?

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

Define the net domestic product at market price (NDPMP).

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

Define GDP.

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

How the factor payments and the transfer payments are treated in the estimation of national income?

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

What is the difference between national income at market price and factor cost?

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

What are the three methods of measuring national income?

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

What is meant by value added?

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

What is product method?

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

Money flows are opposite to real flows. How?

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

What is meant by circular flow of income?

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

Explain the circular flow of income in a simple economy.

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CBSE - XII Commerce - Macroeconomics - National Income Accounting

What is the circular flow of income and product?

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