QUESTIONS ery 9 % = e Write methods to measure nati = q i s ‘There are three methods to me aeeen ' ; n 4 pesdctaaiee ‘#Sure the national income. . hos (2) Income Method, | (3) Expenditure Method, ‘ 6: Differentiate bi i“ E etween Personal Income and disposable P Income? aig js: Personal income is the income which @ per Layee rson individually earns in a years, After tracting direct taxes ff : - TO! es, obtained, ie be What is meant by circular flow if national income? ans: Circulation of national inco1 ry Pi at ditisndtncons, me between households and firms is called circular gn i: What is meant by transfer Payments? Ans: eae Payments are the amounts of money which a person gets without labour. aie oon donations, alms, pension, unemployment allowance, scholarship and s etc, e Q.19: When does national income increase? ersonal income, disposable personal income is " Ans: National income increases when the quantity of goods and services is increasing in the country, Q.20: Differentiate between real national income and nominal national income? Ans: Real national income means total quantity of goods and services produced ina ; country. The! i i i increase-in the q H ~and-services-in the country while nominal national income alue of goods and services at the market prices. ‘g_ means monetary vi Q21; Write precautions Ans: (1) Avoid double counting. (2) Subtract depreciation allowance. (3) Subtract indirect taxes. of the product method to measure national income. - a) Value of free services should not be counted. (5) Subsidies should be counted. : Write precautions income method to measure national income’ ) s a ‘means should not be counted in national income, unfair payments should not be included: