Giving reasons categorize the following into stock and flow:
(i) Capital
(ii) Saving
(iii) Gross domestic product
(iv) Wealth
A stock variable is measured at one specific time, and represents a quantity existing at that point in time which may have accumulated in the past. Whereas any variable whose magnitude is measured over a period of time is called a flow variable.
(i) Capital- Capital is a stock variable as it is measured at a particular point of time.
(ii) Saving- Saving is a flow variable as it is measured over a period of time. If it was savings, which is measured at one specific time, then it would have been considered as stock variable.
(iii) Gross Domestic Product: Gross Domestic Product is a flow variable as it is measured over a period of time.
(iv) Wealth: Wealth is a stock variable. Because, wealth is the abundance of valuable resources or valuable material possessions from the past and is measured at a particular point of time.
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 “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 |
C = 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.
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 |