Fundamental of Business Economics–2 / Semester–2 / Unit:1
Essay type Questions
Discuss the concept of gross domestic product ( GDP)
Introduction.
Meaning of GDP.
Calculation of GDP.
Characteristics of GDP.
Limitations of GDP.
2 Discuss the concept of Net Domestic Product (GNP).
Introduction
Meaning of net domestic product.
NDP= GDP – Depreciation
Suppose in an economy, the monetary value of final goods and services produced within the country by domestic and foreign factor is Rs.100 crores. Therefore GDP is Rs.100 crore rupees.The amount of depreciation of equipments is supposeRs.10crore rupees. According to this equation.
GDP = RS.100 – 10 = RS.90
Explain the structure of Indian national income.
Introduction.
Structure of national income.
Primary sector
Industries sector
Service sector
Write a short note: Gross National Product (GNP).
Introduction.
Meaning of GNP.
Explain the calculating methods of national income
Introduction
Calculating methods of GNP
Production method
Income method
Expenditure method
Write a short note : Per capita income.
Introduction.
Equation of Per capita income.
Per capita income = Total National Income / Total Population
Explain the difficulties in measuring of national income.
Introduction.
(A) Conceptual difficulties.
1. Imputed values.
2. Different Practices.
3. Problem of services not marketed.
4. Problem of double counting.
5. Harmful side-effects.
6. Illegal activities
(B) Practical difficulties.
1. Non monetised sector.
2. Illiteracy.
3. More than one occupation.
4. Unreliable data.
5. Limitation of sample method.
Objective Question
What does GDP mean ? / Gross domestic product.
What does GNP mean ? / Gross national product.
What does NNP mean ? / Net national product.
What does NDP mean ? / Net domestic product.
Give formula for obtaining per capita income.
Per capita income = National income / Total population
Gross domestic product include_______investment.
(Gross,Entire,Money,Net)
National income is a______ concept.(Micro, Individual, Family, Macro)
Gross domestic product includes _____________.
a) National output within national boundaries
b) Personal income.
C) Net value of import and export.
d) Foreign income.
Give meaning of national income.
Per capita income is _________income.
a) Per head average.
b) Total income.
c) Average.
d) Rental income.
Share is primary sector in india’s national income is ________
a) Increasing.
b) Constant.
c) Falling.
d) Decreasing
After 1991 contribution of service sector to GDP is _________.
(Increasing, Falling, Same, Decreasing)
Which sector has highest share in GDP of India in current time.
(Industry, Primary, service, None)
In 1950 contribution of agriculture to GDP was_____%
(5.8%, 58%, 62%,80%)
In present time contribution of service sector to India GDP is _____%.
(57.7%, 45%, 35%, 75%)
Since 1954 in India, Who give the all data of national income.
a) Reserve bank of India.
b) Planning commission.
c) CSO.
d) Finance department.
Unit:2 / Essay type Questions
What is Barter system ? explain the limitation of barter system.
Introduction.
Meaning of barter system.
Limitations of barter system.
Lack of mutual confidence.
Lack of common measurement.
Problem of division of a commodity.
Problem of store of value.
Problem of differed payment.
Problem of maintaining account
Discuss the type of money.
Introduction.
Type of money.
Commodity money.
Animal money.
Metal money.
Paper money.
Bank money.
Invisible money.
What is money ? Explain the function of money.
Introduc tion.
Definition of money.
Functions of money.
a)Primary functions.
1 Medium of Exchange.
2 Measure of value.
b)Secondary functions.
1 Standard of deferred payment.
2 Store of value.
3 Transfer of money.
c)Contingent functions.
1 Liquidity.
2 Basis of credit system.
3 Measurement and distribution of national income.
4 Equalizer of marginal utility.
Explain the Fisher’ Equation of money.
Introduction.
Assumptions.
Equation.
Supply of money (MS) = Demand of money (MD)
MV + M’V’ = PT / MV + PT / Or / P = MV
Explanation of Equation with example.
Explain the limitations of Fishser’s equation.
Introduction.
Limitations.
Full employment is not possible.
Velocity is not constant.
Relationship of M/M’ is changeable.
T is not constant
Money as a store of value.
Each variable is interdependent.
Price level is not properly explained.
Historically wrong.
Explain the cash balance equation given by Cambridge.
Introduction.
Meaning & Definition.
Purpose of cash balance.
Transaction motive.
Precautionary motive.
Speculative motive,
(A) Prof. Pigou’s equation.
P = M In which P = value of money. If P is defined as price level, then the equation is P = M
P = Average price level of the consumer goods.
M = Total proportion of money.
R = Real income of society.
K = part of real income kept in cash balance.
(B) Prof. Keynes equation.
P = K
N = Total proportion of money.
P = Price of a unit which present the average price.
K = Part of consumer good unit kept in cash form.
Comparison of Fisher’s and Cambridge equation.
Introduction.
Fisher’s equation.
Cambridge equation.
Similarities.
what is money supply ? Discuss the measures and components of money supply.
Introduction.
Meaning and definition of money supply
M1 = Coins and currency notes.
M2 = M1+Saving deposit of the post office savings bank.
M3 =M1+Time deposit of the public with banks.
M4 = M3+Total deposit of the post office savings banks.
Components of money supply.
1. Currency money.
2. Bank money.
3. Velocity of money.
4. Near money.
5. Liquidity approach.
Write a short note : High powered money.
Introduction
Components of high powered money.
1. Currency money.
2. Bank deposits.
3. Cash reserve of the bank.
What is finance ? explain the types of finance.
Introduction.
Meaning of finance.
Types of finance.
On the basis of form.
On the basis of time period.
On the basis of purpose.
Classification on the basis of source.
Finance with or without security.
Discuss the methods of finance.
Introduction.
Direct finance methods.
cash credit.
Overdraft.
Finance through loan.
Indirect finance method.
Discounting of commercial bill.
Purpose of securities.
Underwriting.
Bankers acceptance.
Leasing.
Purchase and discounting of hundis.
discuss the instrument of credit control.
Introduction.
Quantitative credit control means.
Bank rate.
Open market policy.
Cash reserve ratio(CRR).
Statutory liquidity ratio(SLR).
Qualitative credit control means.
Regulation of credit to customer.
The change in margin.
Credit rationing.
Publicity.
Moral pressure.
Direct measures.
Write a short note.
Bank rate.
Repo rate and reverse repo rate.
CRR & SLR.
Objective questions.
Give the Prof. Sidgwick’s definition of money.
“Money is what money does.”
which is the pigou’s equation of cash balance.
P = KR / M
Give the meaning of SLR.
Statutory liquidity ratio.
Give the meaning of barter system.
The barter system in which goods were exchange for goods or Services.
According to quantity theory of money, if the quantity of money is double then what is the value of money.
(Double, Three times, One and half times, Half)
Money is a medium of __________.
(exchange, saving, store, transport)
________ is the first stage of evolution of money.
(commodity money, metallic money, fiat money, paper money)
In barter transaction there was _______ exchange.
(direct, fixed, stable, indirect)
Currency notes and coins are ________ tender money.
(legal, liquidity, physical, illegal)
Classical approach of demand for money is known as ______approach.
(transaction, speculative, liquidity, precautionary)
Cambridge approach of demand for money is known as_________.
(cash balance, liquidity, cash transaction, speculative)
Supply of money is a_________ concept.
(static, stable, fixed, dynamic)
Credit money is created by_______.
(Central bank, Exim bank, Commercial bank, Foreign bank)
Bank rate is an _______ instrument of credit control.
(quantitative, selective, qualitative, non-monetary)
Bank rate is the rate at which _______ bank gives loan to Commercial bank.
(central bank, state bank, foreign bank, national housing bank)