List of top Economics Questions on National Income Accounting asked in GATE XH-C1

"Navratan Policy of the government has helped in improving the performance of Public Sector Undertakings (PSUs) in India." Do you agree with the given statement? Justify your answer with valid arguments.

In a hypothetical economy, if entire additional income is consumed, the value of investment multiplier would be ____ . (Fill up the blank with the correct alternative.)

From the given table, identify that level of income, where Average Propensity to Save (APS) becomes zero: 
 

Identify, what does the shaded area (change in EFG), in the given figure indicate? 
 

I. Consumption > Income 
II. Saving = Zero (0) 
III. Consumption < Income
IV. Saving < Zero (0)

From the given table, identify that level of income, where Average Propensity to Save (APS) becomes zero: 
 

In a hypothetical economy, if entire additional income is consumed, the value of investment multiplier would be -----. 
(Fill up the blank with the correct alternative.)

Discuss briefly, the circular flow of income in a two sector economy model.
Suppose, an economy is in equilibrium. From the following data, calculate investment expenditure in the economy: Given: National Income (Y) = 10,000 crore Marginal Propensity to Consume (MPC) = 0.8 Autonomous Consumption (C) = 100 crore
"In an economy, Aggregate Demand (AD) is more than Aggregate Supply (AS)." Elaborate the possible impacts of the same, on the level of output, income and employment.
From the following data, estimate the value of Net Indirect Taxes (NIT): \[ \begin{array}{|c|l|c|} \hline \textbf{S.No.} & \textbf{Particulars} & \textbf{Amount (in Rs. crore)} \\ \hline (i) & \text{Net National Product at Market Price } (NNP_{mp}) & 1,400 \\ \hline (ii) & \text{Net Factor Income from Abroad } (NFIA) & 100 \\ \hline (iii) & \text{Gross National Product at Factor Cost } (GNP_{fc}) & 1,300 \\ \hline (iv) & \text{Consumption of Fixed Capital} & 100 \\ \hline \end{array} \]

Identify, what does the shaded area (change in EFG), in the given figure indicate? 
 


I. Consumption > Income 
II. Saving = Zero (0) 
III. Consumption < Income
IV. Saving < Zero (0)

From the given table, identify that level of income, where Average Propensity to Save (APS) becomes zero: \[ \begin{array}{|c|c|c|} \hline \textbf{Income (Rs. crore)} & \textbf{Consumption (Rs. crore)} & \textbf{Savings (Rs. crore) (Y - C)} \\ \hline 0 & 50 & -50 \\ \hline 50 & 75 & -25 \\ \hline 100 & 100 & 0 \\ \hline 200 & 150 & 50 \\ \hline 300 & 200 & 100 \\ \hline 400 & 250 & 150 \\ \hline \end{array} \]

The level of income where Average Propensity to Save (APS) becomes zero is at Income = Rs. 100 crore, since savings (\( S = Y - C \)) equals zero at this point.

In a hypothetical economy, if entire additional income is consumed, the value of investment multiplier would be . (Fill up the blank with the correct alternative.)
Suppose, an economy is in equilibrium. From the following data, calculate investment expenditure in the economy: Given: National Income (Y) = 10,000 crore Marginal Propensity to Consume (MPC) = 0.8 Autonomous Consumption (C) = 100 crore