Institute of Chartered Financial Analysts of India (ICFAI) University 2007 Certification Finance Economics (CFA520): - Question Paper

Personal income in the country is
Particulars
Million Units of Currency
(MUC)
GNP at market prices 1,700
Transfer payments 242
Indirect taxes 173
Personal taxes 203
Consumption of capital 190
Undistributed corporate profits 28
Corporate tax 75
Subsidies 20
(a) 1,363 MUC
(b) 1,121 MUC
(c) 1,230 MUC
(d) 1,296 MUC
(e) 1,496 MUC.
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(2 marks)
40. The subsequent is the info from National Accounts of an economy:
The GDP at market prices is
(2 marks)
Particulars MUC
Direct taxes 2,400
Indirect taxes 11,400
Factor income paid abroad 12,000
Factor income received from abroad 9,000
Depreciation 12,000
Subsidies 6,000
National income 48,000
(a) 24,800 MUC
(b) 30,200 MUC
(c) 68,400 MUC
(d) 52,350 MUC
(e) 45,600 MUC.
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41. Which of the subsequent statements is true?
(1 mark)
(a) Net national product at factor cost plus depreciation equals gross national product at market
prices
(b) National income minus corporate profits minus personal taxes plus transfer payments equals
personal income
(c) Personal disposable income minus personal taxes equals personal consumption
(d) Gross domestic product at market prices minus net factor income from abroad equals gross
national product at market prices
(e) Per capita income equals the summation of national income and population.
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42. Gross domestic product is the market value of
(1 mark)
(a) All goods and services exchanged in an economy
(b) All goods and services exchanged in an economy during a year
(c) All final goods and services exchanged in an economy during a year
(d) All transactions in an economy during a year
(e) All final goods and services produced in an economy during a year.
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43. Consumption function for an economy is estimated to be
C = 1,000 + 0.80 Yd
Which of the subsequent is actual if Yd is zero?
(1 mark)
(a) Consumption is zero
(b) Savings are Rs.1,000
(c) Income must be greater than taxes
(d) Dissavings are Rs.1,000
(e) Savings are zero.
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44. In an economy the marginal propensity to consume is 0.70 and marginal propensity to import is 10%.

Earning:   Approval pending.