I. Choosethe correct answer:
1. National Income is otherwise calledGross National Product
2. National income of a country can becalculated by 3 methods
3. Net National Product = GNP –Depreciation
4. India’s Per capita income is 950dollars
5. Primary sector consists of Agriculture
6. National Income is a measure of Totalvalue of goods & services
7. Expenditure method estimatesnational income from the Savings side
8. Income method sums all forms of Income
9. Percapita Income is an indicator ofLiving Standard of people
10. Primary sector contribution tonational income in India is 15.8%
II. Writeshort notes on the following:
1. Define National income.
Definitionof National Income
“National Income is a measure of thetotal value of goods and services produced by an economy over a period of time,normally a year”. Commonly National Income is called as Gross National Productor National Dividend.
2. How you arrive at NNP?
NetNational Product (NNP)
Net National Product is arrived bymaking some adjustment with regard to depreciation. That is we arrive the NNPby deducting the value of depreciation from Gross National Products (GNP)
NNP= GNP(-) Depreciation
3. Write a note on Income method.
In this method, the Income andPayments received by all the people in the country are calculated.
4. What is Percapita Income?
PercapitaIncome (PCI)
Percapita Income is an indicator toshow the living standard of people in a country.
It is obtained by dividing thenational income by the population of a country.
PercapitaIncome = National Income / Population
5. Write any two needs for the studyof National Income
Need forthe study of National Income:-
- To measurethe size of the economy and economic performance.
- To measurethe production of goods and services.
- To tracethe trend of the economic growth of our country in relation other countries.
6. What is tertiary sector?
Tertiarysector is service sector
Tertiary sector includes trade, hotel,industry, transport, storage, communication, finance, insurance, real estateand social services.
7. What is Laissez – faire?
Laissez-faire means non-interventionby the government.
The government was more or less apolice state.
Government functions catering to theneeds of the people.
8. Write a note on the Protectivefunctions of modern welfare state.
Protectivefunctions:-
- Economicdevelopment can be achieved only if there is peace in the state.
- Governmentis to maintain law and order.
- Protectingthe people from external aggression and internal disorder.
9. Define Gross Domestic Product.
GrossDomestic Product (GDP)
Gross Domestic Product is the totalvalue of output (goods and services) produced by the factors of productionwithin the geographical boundaries of the country.
10. What is net Domestic Product?
NetDomestic Product (NDP)
Net Domestic Product is part of GrossDomestic product. Net Domestic Product is obtained from the Gross DomesticProduct by deducting the quantum of tear and wear expenses (depreciation).
III. Writein a paragraph:
1.Explain two basic concepts of National Income.
NetNational Product (NNP):-
Net National Product is arrived bymaking some adjustment with regard to depreciation. That is, we arrive NNP bydeducting the value of depreciation from Gross Domestic Product.
NNP = GNP(-) Depreciation
GrossDomestic Product (GDP):-
Gross Domestic Product is the totalvalue of output (goods and services) produced by the factor of productionwithin the geographical boundaries of the country.
PercapitaIncome (PCI):-
Percapita Income is an indicator toshow the living standard of people in a country.
It is obtained by dividing theNational Income by the population of a country.
PercapitaIncome = National Income/Population
2.Explain the need for the study of National Income.
Need forthe study of National Income:-
- To measurethe size of the economy and economic performance.
- To measurethe production of goods and services .
- To tracethe trend of the economic growth of our country in relation other countries.
- To knowthe contribution of primary, secondary and tertiary sector in the NationalIncome.
- To help Government,to formulate development plans and policies to increase economic growth.
3.Explain the methods of calculating National Income.
Method ofcalculating National Income:-
Productmethod:-
In this method the total value of allgoods and services produced in a country is taken into account.
Incomemethod:-
In this method, the income andpayments received by all the people in the country are calculated.
Expendituremethod:-
In this method we add up theexpenditure of all people on consumer goods, investment and saving.
4 Write about the Functions of ModernWelfare State.
Functionsof Modern welfare state:-
Protectivefunctions:-
Economic development can be achievedonly if there is peace in the state.
Government is to maintain law andorder.
Protecting the people from externalaggression and internal disorder.
TheAdministrative functions:-
The three important wings of the stateare legislature, Executive and Judiciary.
SocialSecurity functions:-
The government undertakes socialsecurity measures by offering relief to the poor, sick and the unemployed.
Economicfunctions:-
The government takes various measuresto improve agriculture and develop trade and industry.