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NCERT solutions for Class 12 Economics chapter 2 - National Income Accounting

Class 12 Economics - Introductory Macroeconomics

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Chapters

NCERT Class 12 Economics - Introductory Macroeconomics

Class 12 Economics - Introductory Macroeconomics - Shaalaa.com

Chapter 2: National Income Accounting

Exercise

Chapter 2: National Income Accounting Exercise Exercise solutions [Pages 33 - 34]

Exercise | Q 1 | Page 33

What are the four factors of production and what are the remunerations to each of these called?

Exercise | Q 2 | Page 33

Why should the aggregate final expenditure of an economy be equal to the aggregate factor payments? Explain.

Exercise | Q 3 | Page 33

Distinguish between stock and flow. Between net investment and capital, which is a stock and which is a flow? Compare net investment and capital with flow of water into a tank.

Exercise | Q 4 | Page 33

What is the difference between planned and unplanned inventory accumulation? Write down the relation between change in inventories and value added of a firm.

Exercise | Q 5 | Page 33

Write down the three identities of calculating the GDP of a country by the three methods. Also briefly explain why each of these should give us the same value of GDP.

Exercise | Q 6 | Page 33

Define budget deficit and trade deficit. The excess of private investment over saving of a country in a particular year was Rs 2,000 crores. The amount of budget deficit was (−) Rs 1,500 crores. What was the volume of trade deficit of the country?

Exercise | Q 7 | Page 33

Suppose the GDP at market price of a country in a particular year was Rs 1,100 crores. Net Factor Income from Abroad was Rs 100 crores. The value of Indirect taxes − Subsidies was Rs 150 crores and National Income was Rs 850 crores. Calculate the aggregate value of depreciation.

Exercise | Q 8 | Page 33

Net National Product at Factor Cost of a particular country in a year is Rs 1,900 crores. There are no interest payments made by the households to the firms/government, or by the firms/government to the households. The Personal Disposable Income of the households is Rs 1,200 crores. The personal income taxes paid by them is Rs 600 crores and the value of retained earnings of the firms and government is valued at Rs 200 crores. What is the value of transfer payments made by the government and firms to the households?

Exercise | Q 9 | Page 33

From the following data, calculate Personal Income and Personal Disposable Income.

   

Rs (crore)

(a)

Net Domestic Product at factor cost

8,000

(b)

Net Factor Income from abroad

200

(c)

Undisbursed Profit

1,000

(d)

Corporate Tax

500

(e)

Interest Received by Households

1,500

(f)

Interest Paid by Households

1,200

(g)

Transfer Income

300

(h)

Personal Tax

500

Exercise | Q 10 | Page 33

In a single day Raju, the barber, collects Rs 500 from haircuts; over this day, his equipment depreciates in value by Rs 50. Of the remaining Rs 450, Raju pays sales tax worth Rs 30, takes home Rs 200 and retains Rs 220 for improvement and buying of new equipment. He further pays Rs 20 as income tax from his income. Based on this information, complete Raju’s contribution to the following measures of income (a) Gross Domestic Product (b) NNP at market price (c) NNP at factor cost (d) Personal income (e) Personal disposable income.

Exercise | Q 11 | Page 34

The value of the nominal GNP of an economy was Rs 2,500 crores in a particular year. The value of GNP of that country during the same year, evaluated at the prices of same base year, was Rs 3,000 crores. Calculate the value of the GNP deflator of the year in percentage terms. Has the price level risen between the base year and the year under consideration?

Exercise | Q 12 | Page 34

Write down some of the limitations of using GDP as an index of welfare of a country.

Chapter 2: National Income Accounting

Exercise

NCERT Class 12 Economics - Introductory Macroeconomics

Class 12 Economics - Introductory Macroeconomics - Shaalaa.com

Textbook solutions for Class 12






















NCERT solutions for Class 12 Economics chapter 2 - National Income Accounting

NCERT solutions for Class 12 Economics chapter 2 (National Income Accounting) include all questions with solution and detail explanation. This will clear students doubts about any question and improve application skills while preparing for board exams. The detailed, step-by-step solutions will help you understand the concepts better and clear your confusions, if any. Shaalaa.com has the CBSE Class 12 Economics - Introductory Macroeconomics solutions in a manner that help students grasp basic concepts better and faster.

Further, we at Shaalaa.com provide such solutions so that students can prepare for written exams. NCERT textbook solutions can be a core help for self-study and acts as a perfect self-help guidance for students.

Concepts covered in Class 12 Economics chapter 2 National Income Accounting are Methods of Calculating National Income - Value Added Or Product Method, Methods of Calculating National Income - Expenditure Method, Methods of Calculating National Income - Income Method, Aggregates Related to National Income - Gross National Product (GNP), Aggregates Related to National Income - Net National Product (NNP), Gross and Net Domestic Product (GDP and NDP), GDP and Welfare, Aggregates related to National Income - Private Income, Aggregates Related to National Income - Personal Income, Aggregates Related to National Income - Personal Disposable Income, Aggregates Related to National Income - Domestic Income (NDP), Real and Nominal GDP, Macroeconomic Identities, Methods of Calculating National Income - Factor Cost, Basic Prices and Market Prices, Concept of National Income, National Disposable Income (Gross and Net), Aggregates Related to National Income - Gross Value Added and Net Value Added, Basic Concepts - Consumption Goods, Basic Concepts - Capital Goods, Basic Concepts - Final Goods, Basic Concepts - Intermediate Goods, Meaning of Investment, Meaning of Depreciation, Basic Concepts - Gross Investment, Basic Concepts - Net Investment, Basic Concepts - Stocks and Flows, Circular Flow of Income (Two Sector Model).

Using NCERT Class 12 solutions National Income Accounting exercise by students are an easy way to prepare for the exams, as they involve solutions arranged chapter-wise also page wise. The questions involved in NCERT Solutions are important questions that can be asked in the final exam. Maximum students of CBSE Class 12 prefer NCERT Textbook Solutions to score more in exam.

Get the free view of chapter 2 National Income Accounting Class 12 extra questions for Economics and can use Shaalaa.com to keep it handy for your exam preparation

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