Part 7 Economics PI, PDI, PCI, GCF ,GDP By Md kashif hayat

1 Define personal income ?

Ans = It is the sum of all the incomes received by all the households during a given period say financial year. 

2 Mathematical formula for personal income is ?

Ans ,PI = NI + income received but not earned - income earned but not received

3 What is PDI define it ?

Ans = measures the after-tax income of persons and nonprofit corporations.

Or

 If the personal tax payments and Non tax payments are deducted from personal income PDI is obtained. 

4 Define mathematical formula for PDI ?

Ans = PI - Personal tax payments - Non tax payments 

5 What is the full form of PCI ?

Ans = Per capita income 

6 Define PCI ?

Ans = It is generally calculated by dividing the total national income ( GDP)  by total population.It serve as an indicator of a country's living standard. 

( Note = It is not the average income because it includes working and non working peoples and child.) 

7 Define GDP deflator/Implicit price deflater ?

Ans = The GDP deflator is a measure of the level of prices of all new, domestically produced, final goods and services in an economy in a financial year.

8 What is the mathematical formula for GDP price deflater ? 

Ans = GDP price deflater = ( Nominal GDP / Real GDP)*100

9 What is the full form of GCF ?

Ans = Gross Capital formation 

10 Define GCF ?

Ans = It is defined as the new investment addition to the fixed assets, plus the net change in inventions. 

Posted in: ECONOMY