National Income Accounting

[Neha]

Sir can u please solve the questions below, i hav solved them bt not sure of the answers

Q1) Given :
1) GDP at factor cost(FC) 10000
2) Net factor income from abroad 500
3) Net Indirect taxes(NIT) 1500
4) Government(non-investment) expenditure at market prices(MP) 1500
5) current account deficit on balance of payments 500
6) gross savings of government -300

Calculate :
1) GDP at MP
2) GNP at MP
3) if pvt consumption expenditure is .75 times the GNP at MP, calculate Gross investment
4) Gross savings in the economy
5) Gross pvt savings
6) pvt sectors savings ratio out of its disposable income

Q2) Given:
1)Depreciation allowances 200
2) Personal (direct) tax payments 250
3) indirect business taxes 200
4) corporate (profits) taxes 100
5) Dividend Payments 50
6) undistributed profits 50
7) Government transfer payments 200
8) personal consumption expenditure 1200
9) personal savings 100

Calculate:
1) personal income
2) Net national product
3) national income
4) Gross national product

Q3) Given
1) Merchandise exports 500
2) merchandise imports 400
3) exports of services 150
4) imports of services 100
5) income receipts on assets abroad 100
6) income payments of foreign assets 150
7) net unilateral transfers -10
8) change in assets abroad 500
9) change in foreign assets held in a country 400

Calculate:
1) statistical discrepancy

Q4) Given:
1) GDP at FC 10000
2) net current account balance -500
3) gross investment =2000
4) Net factor income from abroad -800
5) depreciation 1000
6) net indirect taxes 1300

Calculate:
1) GDP at MP
2) gross savings

Q5) Given:
1) GDP at FC 22000
2) net factor income from abroad 1500
3) depreciation 1000
4) exports 5000
5) imports 6000
6) gross investment 7400
7) gross savings 4500
8) NIT 3000

Calculate :

1) trade deficit
2) current account deficit
3)  GNP at FC

Q6) Given :
1) GDP at FC 10000
2) net factor income from abroad -1000
3) depreciation 500
4) gross investment 3000
5) gross savings 4500
6) NIT 1500
7) gross fiscal deficit 150

Calculate :
1) NNP at MP
2) current account deficit
3) the excess of private investment over pvt savings

[Anjali]

Hi Neha !
Can we discuss these ques ?

[Anjali]

People can we please discuss these ques here . JNU has a trend of asking such ques. If you all agree , I will start solving them .

[deepasna.kalra]

@anjali! Let's discuss these questions .

[Anjali]

Okay deepasna .Thanks for joining in .
Will get back with my sol in half an hour. Will that be okay ?

[Anjali]

Ques 1
1. 11500
2. 12000
3. 3200
4. 3000
5. 0.25

What's your answer Deepasna ?

[deepasna.kalra]

Hi the first two and the last part match could you please tell your approach to part 3

[Anjali]

0.75 is MPC , so 0.25 is MPS
Private savings are 0.25*12000 = 3000
I suppose that since MPC is mentioned as pvt consumption expenditure
So 0.25 should private MPS , yielding 3000 as private savings
Then S=I + CA
I'll post answer for ques two in a while . Keep in touch !

[Anjali]

Ques 2 and 3 Dunno ! You try and let me know !
Answers for
4th ques
1. 11300
2. 1500

5th ques
1. - 1000
2. -500
3. 23500

6th ques
1. 10,000
2. 1500
3. Dunno

I have a doubt . In ques 1 , do we have to take CA deficit as 500 or -500 ?

[deepasna.kalra]

We are stuck with almost same questions. I believe question 3 is incomplete and this part will be related to some previous  parts. As for current account deficit I believe it should be -500. Just give me some time to tally the remaining answers . Please guys join the discussion and help out.

[deepasna.kalra]

Answers 4 and 6 matched . As for the 5 question in the second part won't we use the identity S=I+CA. The remaining parts match

[jane]

cad will be 500... so, nx=x-m=-500, i think..

[jane]

any idea abt q.3? can't seem to figure it out

[SoniaKapoor]

how to do quest 5...2nd part...rest matched

[Anjali]

Yes for 5th second part should be -2900
Iam just a little confused that when CA deficit is written and its value is given in positive , so in that case do we have to take its value by default as -ve ?

[Anjali]

Please ppl help us in ques 3 and 4

[jane]

in Q.2, can personal income be 1550? any idea ppl?

[The Villain]

Pls explain q1...parts 3-6...
I'm very bad in NIA.

[SoniaKapoor]

pls exlain me me also..part 5 and 6 of quest 1

[Anjali]

0.75 is MPC , so 0.25 is MPS
Private savings are 0.25*12000 = 3000
I suppose that since MPC is mentioned as pvt consumption expenditure
So 0.25 should private MPS , yielding 3000 as private savings
Then S=I + CA
In ques CA deficit is mentioned and it is -500 , so Iam not sure how to put it into this equation