List of top Economics Questions on Flow of Income

Suppose in an economy, planned spending is greater than planned output. Identify the correct option with respect to effects on the economy:
(i) Decrease in planned inventories in the economy
(ii) Rise in National Income
(iii) Decrease in real output level in the economy
(iv) Decrease in employment level in the economy
State the meaning of autonomous and accommodating items, under Balance of Payments of India, with the help of an example.
“Disposition Phase of circular flow of Income involves flow of factor Income, which comprises of rent, wages, interest, and profits from firms to households.” Defend or refute the statement, giving valid reasons in support of your answer.
Discuss briefly the concept of circular flow of income in a two-sector model.
Identify and discuss the economic issue indicated in the above text.
Discuss the likely consequence on money supply if the rate-setting panel had decreased the said rate.
Suppose, the Balance of Trade of an imaginary economy shows a favourable balance of Rs. 500 crore. The values of merchandise exports are Rs. 1200 crore and transfer payments are Rs. 400 crore. The value of merchandise imports would be Rs. ------ crore. (Choose the correct alternative to fill in the blank)
As per the National Stock Exchange (NSE) data, dated 9th June, 2023, there was a net selling off worth 309 crore by Foreign Institutional Investors (FIIs) over the period of one month i.e., 9th May, 2023 - 9th June, 2023.
The above-mentioned transactions will be recorded on ------ side of ------ account of Balance of Payments of India.
Surplus in Balance of Payments (BOP) refers to the excess of -------. (Choose the correct alternative to fill in the blank)
Read the following statements carefully:
Statement 1: If in an economy the level of income increases (\( \Delta Y \)), it will always proportionately increase the level of consumption (\( \Delta C \)).
Statement 2: Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS) are always equal to each other.
Choose the correct alternative from the following: