Assignment 1 Date of Submission: 30 12 - 2013 1. Assume that only two goods, butter and guns are produced in an economy.

. The following information pertaining to the economy is available Year 2011 2012 Number of units of Butter produced 1000 1250 Price of butter per unit (Rs.) 40 44 Number of Units of guns produced 50,000 55,000 Price of gun per unit 6 7

Assuming 2011 to be the base year, you are required to calculate: a. Nominal GDP for the years 2011and 2012 b. GDP deflator for the year 2012 c. Annual inflation over the period 2. Table given below shows the national income accounts of country X in Rs. Crores Using the information given in table calculate 1. GDPMP, 2. NNPMP, 3. NI, 4. Personal income, 5. Personal disposable income Particulars GDP at factor cost Indirect taxes Subsidies Net factor income from abroad Savings of non departmental public enterprises Income from property and entrepreneurship accruing to Govt. administrative dept. Consumption of fixed capital Interest on public debt Current transfers from govt. Other current transfers from rest of the world Corporate tax Saving of private corporate sector Direct taxes paid by households
1

Value in Million Rupees 2570 850 125 -5 15 100 290 60 245 310 190 85 500

3. The below tablet is presented with the data of information regarding a nations income. You are required to ascertain the following. i. Net National Product at Market Prices ii. Disposable Personal Income Data Net Domestic Product at Factor Price Income from Domestic Product accruing to the Government Sector Interest on National Debt Transfer Payments by Government Net Private donations from abroad Net earned income from abroad Indirect Taxes Direct Taxes Subsidies Taxes on Corporate profits Undistributed Profits of Corporations Value in Million Rupees 30,960 280 340 480 60 160 2660 670 200 444 210

4. Table below shows National income statistics of country X. Find i. National Income, ii. GNPMP, iii. NNPMP, iv. Personal Income, v. Personal Disposable Income and vi. Personal Saving Data Proprietors Income Corporate Dividends Social Security Contributions Personal Taxes Interest Paid by Consumers Interest Paid by Government Government and Business Transfers Personal Consumption Expenditures Capital Consumption Allowance Compensation of Employees Business Interest Payments Indirect Business Taxes Rental Income of Persons Corporate Profits Value in Million Rupees 1203 664 253 4021 644 1051 3745 19919 3564 18663 2649 2663 341 1648

5. The below tablet is presented with the data of information regarding a nations income. You are required to ascertain the following. 1. Net National Product at Market Prices 2. Disposable Personal Income Data Net Domestic Product at Factor Price Income from Domestic Product accruing to the Government Sector Interest on National Debt Transfer Payments by Government Net Private donations from abroad Net earned income from abroad Indirect Taxes Direct Taxes Subsidies Taxes on Corporate profits Undistributed Profits of Corporations Value in Million Rupees 30,960 280 340 480 60 160 2660 670 200 444 210

6. Collect data on Gross Domestic Capital formation, Private Final Consumption Expenditure, Net Factor Income from abroad, GDP (at factor cost and market price), GNP (at factor cost and market price) and NI at current prices for 1950 to 2012. Analyse the trend and changes in the above macroeconomic indicators over the past 60 years. 7. Collect data on Gross domestic Capital formation, Private final consumption expenditure, Net Factor Income from abroad, GDP (at factor cost and market price), GNP (at factor cost and market price) and NI at constant prices for 1950 to 2012. Analyse the trend and changes in the above macroeconomic indicators over the past 60 years. 8. Analyse different situations in which income, expenditure and product method of national income measurement is used in Indian Economy context. Analyse the trend in national income measured using the above three methods in the post liberalization period.