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Briefly explain the different phases of circular flow of income. In an economy, if the Real Gross Domestic Product (GDP) is Rs. 300 crore and Price Index (with base = 100) is 110, calculate the Nominal Gross Domestic Product.
Choose the correct alternative to fill in the blanks (i) and (ii) in the figure.
Operating Surplus does not include __________. (Choose the correct alternative to fill up the blank)
Choose the correct alternative to fill in the blanks (i) and (ii) in the figure. The figure shows a circular flow between Household and Firms : the upper flows are "(i) ________ Income" and "Factors of Production"; the lower flows are "Goods and Services" and "(ii) ________ Expenditure". Alternatives :
Operating Surplus does not include _________. (Choose the correct alternative to fill up the blank)
Choose the correct alternative to fill in the blanks (i) and (ii) in the figure. The figure is a two-sector circular flow between two boxes labelled "Household" and "Firms", with four flows : "(i) __________ Income" flowing from Firms to Household; "Factors of Production" flowing from Household to Firms; "Goods and Services" flowing from Firms to Household; and "(ii) __________ Expenditure" flowing from Household to Firms. Alternatives :
(a) Discuss briefly the concept of circular flow of income in a two-sector model. (b) “Real Gross Domestic Product (GDP) is a better indicator of economic growth of a nation as compared to the Nominal Gross Domestic Product (GDP).” Do you agree with the given statement ? Justify your answer with a valid hypothetical numerical example.
(i) Explain the concept of circular flow of income in a two-sector economy. (ii) "Gross Domestic Product (GDP) and sum of Gross Value Added (GVA) in an economy are always equal." Justify the given statement with valid arguments. (i) "Gross Domestic Product (GDP) Deflator is represented by the ratio of Real GDP and Nominal GDP." Do you agree with the given statement ? Justify your answer with valid arguments and a hypothetical numerical example. (ii) State the meaning of income from Property and Entrepreneurship.
"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. Estimate the value of Net Domestic Product of Factor Cost (NDP_FC), using the following information :
In a two sector economy, the flow of factor payments moves from __________ to __________. (Choose the correct option to fill in the blanks)