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Economics XII A,D



Mrs. Rekha rajan, PGT(Eco)



  1. Calculate Private income and Personal disposable income:

      Income from domestic product accruing to private sector    4000

      Savings of non departmental enterprises                                 200

      Current transfer from Govt. Administrative department         150

      Savings of private sector                             400

      Current transfers from rest of the world                                    50

      Net factor income from abroad                                                 -40

      Corporate tax                                                 60

      Personal Taxes                             140

  1. Calculate NDP FC and Gross National Disposable Income:

      Private Final Consumption Expenditure                    250

      Net factor Income from abroad                                  50

      Government final consumption expenditure             50

      Consumption of fixed capital                          25

      Net exports                                                     -10

      Subsidies                            10

      Net domestic capital formation                        30

      Indirect tax                                                       20

    1. If APC is 0.98 Find APS.
    2. Consumption function is C = 300 + 0.67 Y, Find MPS.
    3. Consumption Function is C = 100+0.25 Y.  Prove that with increase in income APC decrease.

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