Define budget deficit and trade deficit. The excess of private investment over saving of a country in a particular year was Rs 2,000 crores. The amount of budget deficit was (– )Rs 1,500 crores. What was the volume of trade deficit of that country?

Calculate national income and personal disposable income:

Corporation tax 100

Private final consumption expenditure 900

Personal income tax 120

Government final consumption expenditure 200

undistributed profits 50

Change in stocks -20

Net domestic fixed capital formation 120

Net imports 10

Net indirect tax 150

Net factor income from abroad -10

Private income 1000

Define flows.

National income is the sum of factor incomes accruing to :

(Choose the correct alternative)

(a) Nationals

(b) Economic territory

(c) Residents

(d) Both residents and non-residents

Calculate net national product at a market price and private income

Net Current transfer to abroad 10

Private final consumption expenditure 500

Current transfer from government 30

Net factor income to abroad 20

Net export -20

Net indirect tax 120

National debt interest 70

Net domestic capital formation 80

Income accruing to government 60

Government final consumption expenditure 100

Find Gross National Product at Market Price and Private Income: (Rs crores)

(i)Private final consumption expenditure 800

(ii)Net Current transaction to abroad 20

(iii)Net factor income to abroad(-) 10

(iv)-300

(v)Net indirect tax150

(vi)Net domestic capital formation200

(vii)Current transfer to government40

(viii)Depreciation100

(ix)Net imports30

(x)Income accruing to government90

(xi)National debt interest50