When Indians buy foreign goods, this spending escapes as a __________ from the circular flow of income decreasing aggregate demand.

Match List-I with List-II

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This is the index of prices of a given basket of commodities which are bought by the representative customer. Two years under consideration are kept – one is the base year, the other is the current year. First, the cost of purchase of a given basket of commodities in the base year is calculated. Then the cost of purchase of the same basket in the current year is calculated. Then we express the latter as a percentage of the former.

This index is called :

1. Customer Index Pricing
2. Consumer Index Pricing
3. Consumer Price Index
4. Customer Price Index

The basis of the difference in income and product method of National Income Accounting is best deciphered by which of the following?

1. Product method measures the aggregate value of final goods and services produced by all the firms.
2. Income method measures the sum total of consumption expenditure.
3. Product method refers to the final consumption expenditure on the goods and services produced by the firm.
4. Income method refers to the fixed cost of the goods and services produced by the firm.

Let us say a firm produces Rs 100 worth of goods per year, Rs 20 is the value of intermediate goods used by it during the year and Rs 10 is the value of capital consumption. Calculate the Gross value added.

Which statements are true in terms of basic national income aggregates:

(A) GNP at factor cost measures the value of output received by the factors of production belonging to a country in a year.

(B) GDP is the market value of all intermediate goods and final goods and services produced within a domestic territory of a country measured in a year.

(C) NDP at factor cost is the income earned by the factors in the form of wages, profits, rent, interest, etc., within the domestic territory of a country.

(D) GDP at factor cost is gross domestic product at market prices, less net product taxes.

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Match the LIST-I with LIST-II

GDP= Gross Domestic Product, GNP= Gross National Product, NNP= Net National Product

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