Question Bank

QUESTION BANK

MACROECONOMICS

Prep atomic number 18d by the faculties of the Department of
Economics, B.Com (Evening)

Chapter 1 (National Income Accounting)

goldbrick answer type questions (2 marks)

1. What is the divagation between intermediate goods & net goods and
services?
2. why are the imports subtracted when gross domestic product is calculated in expenditure
approach?
3. If you woke up in the working & found that titular gross domestic product has doubled
overnight, what statistic would you need to check before you began to
celebrate: wherefore?
4. What does the consumer price index cake?
5. What are the principal deviance between government purchases of goods &
service and transfer payments?
6. Why are interest payments by the government considered part of personal
income but non part of home(a) income?
7. Define takings as an income generating activity.
8. What do you mean by inventory enthronization?
9. Why the home(a) income is measured at factor prices and not at market
prices?
10.Define GDP deflator as a measure of inflation.

11.Explain why we can not calculate the national product simply by adding up
the production of all firms.
12.Why do the economists use real GDP quite than nominal GDP to gauge
economic well-being?
13.



Why do you think households purchase of new housing is included in the
investment components of GDP rather than the consumption component?
14.If the price of a Navy submarine rises, is the consumer price index or the
GDP deflator affected? Why?

Long answer type questions:
1. What is the difference between GDP & GNP? Which one is the better
measure of income? Why?
2. What is GDP deflator and how does it differ from the consumer price index?
3. Discuss the trio approaches of measuring national income? Show that these
three approaches give identical result.
4. Define private saving. How is the private saving used in the economy? What
is the relationship between private saving & national saving
5. Discuss critically GDP as a measure of economic welfare.
6. Derive saving-...If you want to get a effective essay, order it on our website: Orderessay



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