BANASTHALI VIDYAPITH
FACULTY OF LAW
TAKE-HOME ASSIGNMENT IN LIEU OF II PERIODICAL TEST AND II
INTERNAL ASSIGNMENT 2020
B.A. LL.B. II Semester: Macro Economics, Teacher: Dr. Meenakshi Rohella
Both parts are mandatory. For students with roll numbers 1914111 to1914140
Part A
Q.1 Calculate NNPFC by (a) income method and (b) expenditure method. Also find
private income which is 2/3rd of income generated within the domestic territory of
the country.
Sr. Items (Rs. In crore)
No.
1 Capital transfers from rest of the world 200
2 Government final consumption expenditure 2000
3 Current transfers from the rest of the world 200
4 Wages and salaries 7600
5 Dividend 1000
6 Rent and royalty 400
7 Interest 300
8 Addition to the stock of capital 1000
9 Profit 1600
10 Employers’ contribution to social security on behalf of 400
employees
11 Excess of imports over exports 100
12 Excess of factor income earned by the non-residents 60
from the domestic territory over the factor income earned
by the residents from rest of the world
13 Consumption of fixed capital 80
14 Private final consumption expenditure 8000
15 Net indirect taxes 600
Q.2 Find the difference (if any)in domestic income in two economies when
economy-1 is showing import surplus (M-X) of Rs. 50,00,000 and economy -2 is
showing export surplus (X-M ) of Rs. 50,00,000. Net factor income from abroad of
economy-2 is twice that of economy-1. Other things are equal in both the
economies. Give reasons in support of your answer.
Q.3 Suppose firm A sold timber produced in its forest to firm B for Rs. 1,000 and
firewood to consumers for fuel for Rs, 500. Firm B converted logs into slippers
and partly sold to furniture making firm C for Rs. 800 and the remaining to private
consumers for Rs. 700. Firm C sold furniture worth Rs. 1000 to private consumers
and the remaining to a government office for Rs. 500. Calculate:
(i) Values added by firm A, firm B and firm C.
(ii) Total value of output.
Part B
Give your opinion on following statement, “Why we fail to come up with the best
solutions for the economic development of the country?”. Your answer should
reflect a deep thought and relevant insights. Assignment could be submitted after
you come back to campus/on my email address ([email protected])
by 07 April, 2020. Please also include a 1 page ‘duly signed self-declaration’
towards the beginning of the assignment mentioning the key sources of preparing
this assignment, whether you have done it absolutely yourself/taking help of others
and the key learning. No marks would be deducted based on the contents of ‘duly
signed self-declaration’.. In case assignment is submitted via email it should bear
the subject line: Assignment by <Name of Student and Roll number>. For example
assignment by Seema Verma 1914111.
For students with roll numbers 1914141 to1914170
Part A
Q.1 You are given following information about four producers A, B, C and D in an
economy. A sells Rs. 300 worth of his output to B, Rs. 200 worth of his output to c
and Rs. 500 worth of output to households. The sales of B to A, C and D are worth
Rs. 400, Rs. 200 and Rs.300 respectively. C sells to A, B and D output worth Rs.
100 each. Sales by C to households are worth Rs.900. D sells to households output
worth Rs. 700. His exports are worth Rs. 300 while stock worth Rs. 200 remains
unsold with D. Estimate the value added by :
(i) A, B , C and D separately.
(ii) All of them together.
Q.2 Domestic incomes of economy-1 and economy-2 are equal. (X-M) in
economy-1 is of Rs. 10, 00,000. While in economy-2 net factor income from
abroad is of Rs. 10, 00,000. Find the difference in national income of the two
economies (if any) when all other macro variables are the same. Give logical
reasoning.
Q.3 From the following data relating to an economy, Calculate (a) National income
using expenditure method; (b) National income using Income methods; and (c)
Private income.
Sr. No. Particulars Rs. In crores
1 Government final consumption expenditure 5100
2 Gross fixed capital formation 9029
3 Export of goods and services 2800
4 Savings of non-departmental enterprises 120
5 National debt interest 477
6 Net compensation of employees from abroad -9
7 Net property and entrepreneurial income from rest of -316
the world
8 Changes in stocks 2323
9 Net current transfers from government administrative 909
departments
10 Consumption of fixed capital 3023
11 Private final consumption expenditure 42865
12 Import of goods and services 3177
13 Net current transfers from rest of the world 192
14 Net indirect taxes 5168
15 Income from entrepreneurship and property accruing to 545
government administrative departments
16 Compensation of employees 17818
17 Operating surplus 6890
18 Mixed income of the self employed 26041
19 Net capital transfers from rest of the world 1691
Part B
Give your opinion on “How efforts are being made by the government of different
nations to distribute the resources equally among poor and rich people?” Your
answer should reflect a deep thought and relevant insights. Assignment could be
submitted after you come back to campus/on my email address
([email protected]) by 07 April, 2020. Please also include a 1 page
‘duly signed self-declaration’ towards the beginning of the assignment mentioning
the key sources of preparing this assignment, whether you have done it absolutely
yourself/taking help of others and the key learning. No marks would be deducted
based on the contents of ‘duly signed self-declaration’.. In case assignment is
submitted via email it should bear the subject line: Assignment by <Name of
Student and Roll number>. For example assignment by Seema Verma 1914111.
For students with roll numbers 1914171 to1914200
Part A
Q.1 On the basis of following data, prove that ‘Net Value added at Factor Cost’ is
equal to ‘Income Generated’. (Marks 4)
Sr. No. Particulars Rs. In crores
1 Addition to stock 1000
2 Sales 10000
3 Net indirect taxes 800
4 Purchase of raw material 1650
5 Expenses on power 850
6 Consumption of fixed capital 500
7 Rent 700
8 Compensation of employees 3500
9 Interest 1000
10 Dividend 1500
11 Corporate gains tax 300
12 Undistributed profit 200
Q.2 How will you treat the following while estimating national income of India?
Give reasons for your answer.
(i) Salaries received by Indian residents working in Russian Embassy in India.
(ii) Profits earned by an Indian bank from its branches abroad.
(iii) Entertainment tax received by the government.
Q.3 A primitive economy produces final goods worth Rs. 10,000, for self
consumption and worth Rs. 20,000 for sale in the domestic economy. It imports
final goods worth Rs. 15,000. There are no taxed or subsidies in the economy.
However capital consumption and capital loss of Rs. 500 each is incurred during
the year of estimation of national income. Find domestic income.
Part B
Explain the following statement “Can we run a financial institution without the
help of economic theories and their understanding?” Your answer should reflect a
deep thought and relevant insights. Assignment could be submitted after you come
back to campus/on my email address ([email protected]) by 07
April, 2020. Please also include a 1 page ‘duly signed self-declaration’ towards the
beginning of the assignment mentioning the key sources of preparing this
assignment, whether you have done it absolutely yourself/taking help of others and
the key learning. No marks would be deducted based on the contents of ‘duly
signed self-declaration’.. In case assignment is submitted via email it should bear
the subject line: Assignment by <Name of Student and Roll number>. For example
assignment by Seema Verma 1914111.
For students with roll numbers 1914201 to1914228
Part A
Q.1 In an economy, the following transactions take place and the final sale is for
private consumption. A , B, C and D are four industries. A sells to B for Rs.
20,000. B whose value added is RS. 40,000. Sells half of its output to C and
another half to D. C sells all its output to D, whose value added is Rs. 30,000. D
sells all its output to final product for Rs. 1,30,000. What is value added by C?
Q.2 Calculate GNP at MP by Income and Expenditure method.
Sr. No. Particular Rs. In Crore
1 Net Exports 15
2 Private final consumption expenditure 600
3 Consumption of fixed capital 30
4 Operating surplus 190
5 Net indirect taxes 105
6 Net factor income from abroad -5
7 Wages and salaries 520
8 Rent 60
9 Employer’s contribution to social security schemes 100
10 Government final consumption expenditure 200
11 Net capital formation15 100
Q.3 Explain the term normal residents of a country. Are the following normal
residents of India?
(i) Indians employed in World Health Organization Located in India.
(ii) An America tourist staying in India.
Part B
Give your opinion on “How efforts are being made by the government of different
nations to distribute the resources equally among poor and rich people?”. Your
answer should reflect a deep thought and relevant insights. Assignment could be
submitted after you come back to campus/on my email address
([email protected]) by 07 April, 2020. Please also include a 1 page
‘duly signed self-declaration’ towards the beginning of the assignment mentioning
the key sources of preparing this assignment, whether you have done it absolutely
yourself/taking help of others and the key learning. No marks would be deducted
based on the contents of ‘duly signed self-declaration’.. In case assignment is
submitted via email it should bear the subject line: Assignment by <Name of
Student and Roll number>. For example assignment by Seema Verma 1914111.
