Distinguish between revenue expenditure and capital expenditure.
Basis | Revenue expenditure | Capital Expenditure |
---|---|---|
Creation of Assets |
It does not create assets for the government. |
It results in the creation of assets. |
Reduction of liability |
These expenditures do not result in the reduction of Liability. |
These expenditures cause a reduction of the liability of the government. |
Items |
(a) Aids given to states and others |
(a) Purchase of shares |
Differentiate between devaluation and depreciation.
What is a barter system? What are its drawbacks?
Write down some of the limitations of using GDP as an index of welfare of a country.
Explain the relation between government deficit and government debt.
From the following data, calculate Personal Income and Personal Disposable Income.
Rs (crore)
(a) Net Domestic Product at factor cost 8,000
(b) Net Factor Income from abroad 200
(c) Undisbursed Profit 1,000
(d) Corporate Tax 500
(e) Interest Received by Households 1,500
(f) Interest Paid by Households 1,200
(g) Transfer Income 300
(h) Personal Tax 500
Why should the aggregate final expenditure of an economy be equal to the aggregate factor payments? Explain.
Give the relationship between the revenue deficit and the fiscal deficit.
Discuss the issue of deficit reduction.
Are fiscal deficits inflationary?
What is the difference between ex ante investment and ex post investment?
Are fiscal deficits inflationary?
What is a ‘legal tender’? What is ‘fiat money’?
The value of the nominal GNP of an economy was Rs 2,500 crores in a particular year. The value of GNP of that country during the same year, evaluated at the prices of same base year, was Rs 3,000 crores. Calculate the value of the GNP deflator of the year in percentage terms. Has the price level risen between the base year and the year under consideration?
Suppose the exchange rate between the Rupee and the dollar was Rs. 30=1$ in the year 2010. Suppose the prices have doubled in India over 20 years while they have remained fixed in USA. What, according to the purchasing power parity theory will be the exchange rate between dollar and rupee in the year 2030.
From the following data, calculate Personal Income and Personal Disposable Income.
Rs (crore)
(a) Net Domestic Product at factor cost 8,000
(b) Net Factor Income from abroad 200
(c) Undisbursed Profit 1,000
(d) Corporate Tax 500
(e) Interest Received by Households 1,500
(f) Interest Paid by Households 1,200
(g) Transfer Income 300
(h) Personal Tax 500
What is the difference between planned and unplanned inventory accumulation? Write down the relation between change in inventories and value added of a firm.
Are the concepts of demand for domestic goods and domestic demand for goods the same?
Differentiate between balance of trade and current account balance.
Discuss the issue of deficit reduction.
Why should the aggregate final expenditure of an economy be equal to the aggregate factor payments? Explain.