Page 235 - DECO405_MANAGERIAL_ECONOMICS

Managerial Economics

Notes bookstore $75
sum of factor payments $86

How much is added to GDP?
6. Suggest how the discrepancy between output can be calculated by the expenditure approach.
7. ‘The national income over the past five decades has shown erratic growth’. Discuss the
statement.

8. The national income growth rate fluctuates with fluctuations in agriculture. Give your
opinion.
9. Discuss the three methods of national income measurement with a hypothetical example.

10. Explain the circular flow of income in two, three and four sector economy.
Answers: Self Assessment

1. (a) True (b) False (c) False (d) False
(e) False
2. (a) Central Statistical Organisation (b) identical
(c) market prices (d) final product (e) undistributed profit
(f) market price (g) double counting (h) GDP

(i) outflow and inflow (j) unorganized

14.10 Further Readings

Books Bibek Debroy, Managerial Economics, Global Business Press, Delhi.
Dr. Atmanand, Managerial Economics, Excel Books, Delhi.
H.L. Ahuja, Macroeconomics Theory and Policy, S. Chand Publication.
Shapiro, Bensen, The Psychology of Pricing, Harvard Business Review.

Online links http://www.tradechakra.com/indian-economy/national-income.html

http://www.economywatch.com/world-country/national-income.html
http://www.wisegeek.com/what-is-a-circular-flow-of-income.htm
http://tutor2u.net/economics/content/topics/macroeconomy/circular_flow.htm

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