Q. 24

Define the follow

Answer :

(a) Value Addition: Value addition refers to the increase in the value of a good at each successive stage of production. It is the difference between the total value of output and the total value of intermediate consumption.


(b) Gross Domestic Product: Gross Domestic Product is the market value of all the final goods and services produced within the domestic territory of a country during a year.


(c) Flow Variables: Flow is a quantity of any economic variable which is measured over a duration of time. For example, a week, a month or a year. they have an element of time attached to them. For example, monthly wages, production of wheat in a year, etc.


(d) Income from property and entrepreneurship: The income from property and Entrepreneurship refers to the income earned in the form of rent, Royalty, interest, and profit. These are together called as the operating surplus. Profit is further distributed into three types- dividend, corporate profit tax and undistributed profit.


OR



National income or NNP at Fc = 22100


GDP at Mp = NNP at Fc +Depreciation+Net indirect tax 9 +NFIA


= 22100 +500+(-150)


= 23450



GDP at Mp = Private final consumption expenditure+ gross domestic capital formation+ government final consumption expenditure+ net export


23450 = 7200+ gross domestic capital formation+ 6100+ 3400


23450 = gross domestic capital formation + 16700


Gross domestic capital formation= 23450- 16700 = Rs 6750.



NDP at Fc = NNP at fc -NFIA


NDP at Fc = 22100-(-150)


= 22250



Ndp at Fc = Wages and salaries+ operating surplus+ mixed income of self-employed


22250 = 12000 + operating surplus+ 4800


is a curve that22250 = operating surplus+16800


Operating surplus= 22250 - 16800 = 5450



Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
caricature
view all courses
RELATED QUESTIONS :

Calculate nationaEconomics - Board Papers

Define flows.

Economics - Board Papers

National income iEconomics - Board Papers

Calculate net natEconomics - Board Papers

Find Gross Economics - Board Papers