Name: ID.

No: Section No:

BIRLA INSTITUTE OF TECHNOLOGY & SCIENCE, PILANI

SECOND SEMESTER 2018-2019
Tutorial Test 6 A
Course No. : ECON F211 Max. Marks : 24
Course Title : Principles of Economics Duration : 30 mints
Date : 20/04/2019 Weightage : 6%
Instruction - All questions are compulsory. Write your final answer clearly in the given answer space. Show
your calculations on the other side of the page. (Note: overwritten answers will NOT be evaluated. )

Q1. From the following items in the table, indicate which item belongs to GDP and which item belongs GNP of
India. [2 x 4 = 8 marks]

Rent paid to an Indian who owns land in London GNP [2 marks]

Salary paid to foreigners working in India for an Indian owned company GDP [2 marks]
Interest paid on a bond in a foreign-owned company to an Indian citizen GNP
[2 marks]
Profits earned in the India by a foreign-owned company GDP
[2 marks]

Q2. Refer to the information provided in Table below to answer the questions that follow. [4 x 4 = 16 marks]

Items / components (Rs. in ‘000 millions

Depreciation 168
Net Private Domestic Investment 784
Personal Consumption expenditures 2203
Exports 212
Government Purchases 716
Imports 235
Receipts of the factor income from rest of the world 35
Payment of the factor income to the rest of the world 68

a) Calculate gross private domestic investment. 784.0 + 168.0 = 952.0.__

[4 marks]
[4 marks]
b) Calculate Gross Domestic Product (GDP) 2,203 + 952.0 + 716 + (212 - 235) = 3,848__
[4 marks]
[4 marks]
c) Calculate Gross National Product (GNP) 3,848 + (35 - 68) = 3,815

d) Calculate Net National Product (NNP). 3,815 - 168.0 = 3,647___

Name: ID. No: Section No:

BIRLA INSTITUTE OF TECHNOLOGY & SCIENCE, PILANI

B
 SECOND SEMESTER 2018-2019
Tutorial Test 6
Course No. : ECON F211 Max. Marks : 24
Course Title : Principles of Economics Duration : 30 mints
Date : 20/04/2019 Weightage : 6%
Instruction - All questions are compulsory. Write your final answer clearly in the given answer space. Show
your calculations on the other side of the page. (Note: overwritten answers will NOT be evaluated. )

Q1. From the following items in the table indicate which item belongs to GDP and which item belongs to GNP of
India. [2 x 4 = 8 marks]

Rent paid to an US Citizen who owns land in India GDP [2 marks]

Salary paid to US Citizen working in India for an Indian owned company GDP
[2 marks]
Profits earned by a foreign-owned company doing business in India GDP
[2 marks]
Interest received by an Indian on a bond in a foreign-owned company GNP
[2 marks]

Q2. Refer to the information provided in Table below to answer the questions that follow. [4 x 4 = 16 marks]

Items / components (Rs. in ‘000 millions

Depreciation 123
Receipts of the factor income from rest of the world 75
Payment of the factor income to the rest of the world 64
Exports 321
Imports 234
Government Purchases 567
Net Private Domestic Investment 876
Personal Consumption expenditures 3216

a) Calculate gross private domestic investment. 876 + 123 = 999.

[4 marks]

b) Calculate Gross Domestic Product (GDP) 3216 + 999 + 567 + (321 - 234) = 4869 [4 marks]

[4 marks]
c) Calculate Gross National Product (GNP) 4869+ (75 - 64) = 4880____

d) Calculate Net National Product (NNP). 4880 - 123 = 4757 [4 marks]