The problem can be solved by setting up equations based on the given relationships and using substitution and comparison to determine the relative incomes.
Read the following informations carefully and answer the question given below : The sum of the income of Ramu and Shayamu is more than the sum of the income of Chandru and Deepu. The sum of the income of Ramu and Chandru is same as the sum of the income of Shayamu and Deepu. Moreover Ramu earns half as much as the sum of the income of Shayamu and Deepu. Whose income is the highest ?
Asked in KPSC KAS Prelims 2014 · Topic: National Income & Gross Domestic Product (National Income (NI), Personal Income (PI), Disposable Personal Income (DPI))
More Economic Development questions
- In National Income (NI) accounts, Personal Income (PI) is defined as
- Personal Disposable income is equal to
- In order to obtain personal income from National Income, we must - (A) add to National Income, those incomes which are earned but not received. (B) subtract from National Income, those incomes which are received but currently not earned. Choose the correct option - (1) Both (A) and (B) are incorrect (2) Only (B) is correct (3) Only (A) is correct (4) Both (A) and (B) are correct (5) Question not attempted
- Transfer Payments Pensions, subsidies, gifts. Received by households, but not earned from current production. Not part of NI, but part of PI.Therefore, the formula is: PI = NI - (Undistributed Profits + Corporate Taxes + Social Security Contributions) + Transfer Payments.So, from NI to PI: - Undistributed profits, corporate taxes, social security contributions are SUBTRACTED. These are "earned but not received" in terms of direct personal income in the current period for shareholders/employees. Statement (A) says to ADD these. So (A) is false. - Transfer payments are ADDED.
- In macro-economics, disposable income refers to what?
- Read the following statements and choose the correct option : Statement I : Net Domestic Product = Gross Domestic Product + Depreciation Statement II : Per Capita Income = Net Domestic Product/Total Population of the Nation Statement III : Net Domestic Product is the better metrics than Gross Domestic Product for comparing the economies of the world
- If NDP of India is greater than NNP, it means that
- Which of the following statement/s is/are incorrect about Net National Product (NNP)? (a) It shows net production of goods and services produced in a given financial year adjusted for net factor income from abroad. (b) It includes exports, imports but not factor income from abroad. (c) It is called 'net' because it deducts capital depreciation from total National Income.