How can personal disposable income be derived from private income?
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Chapters
Section 1: MICROECONOMIC THEORY
Chapter 1: Microeconomics and Macroeconomics: Introduction
2: Demand and Law of Demand
3: Theory of Consumer Behaviour: Marginal Utility and Indifference Curve Analysis
4: Elasticity of Demand
5: Supply - Law of Supply and Price Elasticity of Supply
6: Market Mechanism: Equilibrium Price and Quantity in a Competitive Market
7: Laws of Returns - Returns to a Factor and Returns to Scale
8: Cost and Revenue Analysis
9: Forms of Market
10: Producer's Equilibrium
11: Determination of Equilibrium Price and Output Under Perfect Competition
SECTION 2: THEORY OF INCOME AND EMPLOYMENT
12: Theory of Income and Employment
SECTION 3: MONEY AND BANKING
13: Money: Meaning and Functions
14: Banks: Commercial Bank and Central Bank
SECTION 4: BALANCE OF PAYMENTS AND EXCHANGE RATE
15: Balance of Payments and Exchange Rate
SECTION 5: PUBLIC FINANCE
16: Fiscal Policy
17: Government Budget
SECTION 6: NATIONAL INCOME
18: National Income and Circular Flow of Income
▶ 19: National Income Aggregates
20: Methods of Measuring National Income
SECTION 7: PROJECT WORK
21: Project Work
22: Model Short Answer Questions
Chapter 1: Microeconomics and Macroeconomics: Introduction
2: Demand and Law of Demand
3: Theory of Consumer Behaviour: Marginal Utility and Indifference Curve Analysis
4: Elasticity of Demand
5: Supply - Law of Supply and Price Elasticity of Supply
6: Market Mechanism: Equilibrium Price and Quantity in a Competitive Market
7: Laws of Returns - Returns to a Factor and Returns to Scale
8: Cost and Revenue Analysis
9: Forms of Market
10: Producer's Equilibrium
11: Determination of Equilibrium Price and Output Under Perfect Competition
SECTION 2: THEORY OF INCOME AND EMPLOYMENT
12: Theory of Income and Employment
SECTION 3: MONEY AND BANKING
13: Money: Meaning and Functions
14: Banks: Commercial Bank and Central Bank
SECTION 4: BALANCE OF PAYMENTS AND EXCHANGE RATE
15: Balance of Payments and Exchange Rate
SECTION 5: PUBLIC FINANCE
16: Fiscal Policy
17: Government Budget
SECTION 6: NATIONAL INCOME
18: National Income and Circular Flow of Income
▶ 19: National Income Aggregates
20: Methods of Measuring National Income
SECTION 7: PROJECT WORK
21: Project Work
22: Model Short Answer Questions
![Frank solutions for Economics [English] Class 12 ISC chapter 19 - National Income Aggregates - Shaalaa.com](/images/economics-english-class-12-isc_6:557367fb4d974c67badae9e1dbdc022d.jpg "Frank solutions for Economics [English] Class 12 ISC chapter 19 - National Income Aggregates")
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Solutions for Chapter 19: National Income Aggregates
Below listed, you can find solutions for Chapter 19 of CISCE Frank for Economics [English] Class 12 ISC.
TEST YOURSELF QUESTIONS
TEST YOURSELF QUESTIONS [Pages 380 - 384]
Frank solutions for Economics [English] Class 12 ISC 19 National Income Aggregates TEST YOURSELF QUESTIONS [Pages 380 - 384]
Select the correct option for each of the following questions: (1 mark each)
GDPMP equals ______.
GDPFc + Net indirect taxes
GDPFc − Net indirect taxes
GDPFc − indirect taxes
GDPFc + subsidies
GNPFC equals ______.
GDPFC + Net factor income earned from abroad
GDPMc − Net indirect taxes
NNPFC + Net indirect taxes
NDPMP + Net factor income earned from abroad
NDPFC includes the following ______.
compensation of employees
operating surplus
mixed income
all of these
NNPFc will be equal to NDPFe when ______.
depreciation is zero.
when net factor income earned from abroad is zero.
when net indirect taxes are zero.
when subsidies are zero.
Net factor income earned from abroad is ______.
GNPMP − NNPMP
NDPFc + net indirect taxes
GNPFc − GDPFc
GDPMP − depreciation
Very Short Answer Questions. (2 marks each)
Define national income.
Define national product.
What is domestic product?
What is national product minus domestic product equal to?
Can the net factor income from abroad be negative?
When is the national product of a country higher than the domestic product?
What is meant by national product at market prices?
Define national product at factor prices.
What is meant by net factor income from abroad?
What do you understand by net indirect taxes?
Answer in one sentence only:
What is depreciation?
Which of the national income aggregates is technically known as national income?
What are transfer payments?
Give two examples of transfer payments.
Give two examples of transfer payments from the rest of the world.
Distinguish between factor income and transfer income.
What is disposable income (DI)?
What is per capita income?
What should be deducted from gross domestic product to get the net domestic product?
Under which situation is the value of the national product more than the domestic product?
What should be added/subtracted from the net domestic product at market prices to get the net domestic product at factor cost?
Mention any four important national income aggregates.
What is GNP at factor cost?
Define NNP.
What is GDP at market prices?
What is the difference between GNPMP and NDPFc?
How is national income different from GNP at market prices?
Define GNP at factor cost.
How GNP at factor cost different from national income?
Distinguish between personal income and personal disposable income.
What is private income?
What is personal disposable income?
How is net national product at factor cost obtained from net national product at market prices?
How is net national product at factor cost obtained from net domestic product at factor cost?
How can gross domestic product at factor cost be obtained from the gross national product at market price?
What is national disposable income?
Distinguish between national income at current and national income of constant prices?
Define ‘Nominal GNP.’
What is economic welfare?
Why is real per capita income taken as an index of economic welfare?
State any two limitations of per capita GDP as an index of economic welfare.
Explain the meaning of non-market activities.
Short Answer Questions. (3 marks each)
Distinguish between ‘Gross Domestic Product’ at market prices and ‘Net Domestic Product’ at factor cost.
Distinguish between Gross National Product and Net National Product.
Distinguish between:
‘Net National Product’ at market prices and ‘Net Domestic Product’ at market prices.
Distinguish between factor income and transfer income.
What are transfer payments?
How do transfer payments differ from factor payments?
How are transfer payments treated in the estimates of national income?
Differentiate between:
‘National Disposable Income’ and ‘Personal Disposable Income’.
Differentiate between personal income and private income.
How is personal income calculated from private income?
How can we obtain national income from GDPMP.
How can we obtain personal disposable income from personal income?
Complete the following equations:
Complete the following equation:
GNP = NNP + ______
Complete the following equation:
NNP = NDP + ______
GDPMP = GDPFc + ______
Complete the following equation:
GDP = NDP + ______
Complete the following equation:
National Income at Factor Cost = National Income at Market Price − ______
Complete the following equation:
DPI = PI − ______
Complete the following equations:
Net factor income from abroad = GNPFc − ______
Net indirect tax = Indirect taxes − ______
NDPMP = GDPMP − ______
Complete the following equation:
GNPMP = GDPMP + ______
Depreciation = GNPMP − ______
Personal Income = Personal Disposable Income + ______
Distinguish between national income at current and national income of constant prices?
Discuss two reasons why the per capita real income is considered to be a better index of economic welfare than gross domestic product.
The growth of the Gross Domestic Product is not a real indicator of economic welfare. Discuss two reasons to justify the given statement.
Distinguish between “real” gross domestic product and “nominal” gross domestic product. Which of these is a better index of welfare of the people and why?
What is economic welfare?
Explain how GDP is an indicator of economic welfare?
Long Answer Questions. (6 marks each)
Explain the following concepts and show their relationship:
‘Net National Product’ at market prices and ‘Gross Domestic Product’ at factor cost.
Explain the following concepts and show their relationship:
‘Gross Domestic Product’ at market prices and ‘Gross National Product’ at factor cost.
Define ‘Gross Domestic Product’ at market prices.
Define ‘Net National Product’ at factor cost.
Bring out the ‘Gross Domestic Product’ at market prices and ‘Net National Product’ at factor cost relationship between.
Define the following concepts ‘Personal Income’.
Define the following concepts ‘Personal Disposable Income.’
Show how personal income and personal disposable income are interrelated.
What is private income?
Define the following concepts ‘Personal Disposable Income.’
How are ‘Private Income’ and ‘Personal Disposable Income’ related?
Explain any three national income aggregates. How are they related to each other?
Differentiate between ‘personal disposable income’ and ‘national disposable income.’
Explain the limitations of real per capita income as a measure of economic welfare.
Read the passage below and answer the questions that follow.
| The Central Statistical Office (CSO) in the Ministry of Statistics and Programme Implementation of Government is entrusted with the responsibility of compilation of national income and the related aggregate in the country. It regularly publishes national income data NSO, in its Press Release of 28 February, 2022, has given data of India's national income 2021-22 (Advanced Estimates). These data relate to GNP, GDP, per capita income, various categories of expenditure, savings, capital formation, etc. |
- What is per capital income? [1]
- Distinguish between domestic product and national product. [2]
- Distinguish between GDP at current prices and GDP at constant prices. [2]
- What is operating surplus? [1]
- State any two problems faced in the calculation of national income in developing countries. [2]
Solutions for 19: National Income Aggregates
TEST YOURSELF QUESTIONS
Frank solutions for Economics [English] Class 12 ISC chapter 19 - National Income Aggregates
Shaalaa.com has the CISCE Mathematics Economics [English] Class 12 ISC CISCE solutions in a manner that help students grasp basic concepts better and faster. The detailed, step-by-step solutions will help you understand the concepts better and clarify any confusion. Frank solutions for Mathematics Economics [English] Class 12 ISC CISCE 19 (National Income Aggregates) include all questions with answers and detailed explanations. This will clear students' doubts about questions and improve their application skills while preparing for board exams.
Further, we at Shaalaa.com provide such solutions so students can prepare for written exams. Frank textbook solutions can be a core help for self-study and provide excellent self-help guidance for students.
Concepts covered in Economics [English] Class 12 ISC chapter 19 National Income Aggregates are Gross National Product at Market Price, Net National Product (NNP), Private Income, Personal Income of National Income, Per Capita Income, Real GDP and Nominal GDP, Key Relationships Among National Income Aggregates, Gross Domestic Product at Market Price, Net Domestic Product at Market Price, Interrelationship among National Income Aggregates, Gross Domestic Product (National Income) and Economic Welfare, National Income Aggregates, Constituents of GNP, Difference between Net Domestic and Net National Product at Market Price, Difference between Net National and Gross National Product at Market Price, Net National Income or Product at Factor Cost, Net Domestic Product or Income at Factor Cost, Gross Domestic Product or Income at Factor Cost, Gross National Product at Factor Cost, Real Income, Disposable Income Aggregates, Difference between Net Domestic Product at Factor Cost and Net Domestic Product at Market Price, Factor Income from Net Domestic Product accuring to Private Sector, Difference between National and Private Income, Difference between Private and Personal Income.
Using Frank Economics [English] Class 12 ISC solutions National Income Aggregates exercise by students is an easy way to prepare for the exams, as they involve solutions arranged chapter-wise and also page-wise. The questions involved in Frank Solutions are essential questions that can be asked in the final exam. Maximum CISCE Economics [English] Class 12 ISC students prefer Frank Textbook Solutions to score more in exams.
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