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Economics · 2026 · 6 marks
National Income AccountingCircular Flow of Income and Methods of Calculating National Income6 marksApplylong answer
CBSE 2026 · Region 3 · Set 3 · Q17
Calculate National Income (NNP$\displaystyle _{FC}$) and Gross Domestic Product at Factor Cost (GDP$\displaystyle _{FC}$) from the following data :S. No. Particulars Amount (in ₹ crore) (i) Rent $\displaystyle 120$ (ii) Profits $\displaystyle 200$ (iii) Domestic Income $\displaystyle 720$ (iv) Mixed Income $\displaystyle 70$ (v) Wages and Salaries $\displaystyle 300$ (vi) Indirect Taxes $\displaystyle 150$ (vii) Subsidies $\displaystyle 50$ (viii) Consumption of fixed capital $\displaystyle 200$ (ix) Interest $\displaystyle 30$ (x) Dividend $\displaystyle 120$ (xi) Net factor income from abroad $\displaystyle 20$
(b)“Increase in per capita availability of goods and services necessarily means rise in welfare of the people of that country.”Do you agree with the given statement ? Give valid reason in support of your answer.(ii)Define capital goods.
Calculate National Income (NNP$\displaystyle _{FC}$) and Gross Domestic Product at Factor Cost (GDP$\displaystyle _{FC}$) from the following data :
| S. No. | Particulars | Amount (in ₹ crore) |
| (i) | Rent | $\displaystyle 120$ |
| (ii) | Profits | $\displaystyle 200$ |
| (iii) | Domestic Income | $\displaystyle 720$ |
| (iv) | Mixed Income | $\displaystyle 70$ |
| (v) | Wages and Salaries | $\displaystyle 300$ |
| (vi) | Indirect Taxes | $\displaystyle 150$ |
| (vii) | Subsidies | $\displaystyle 50$ |
| (viii) | Consumption of fixed capital | $\displaystyle 200$ |
| (ix) | Interest | $\displaystyle 30$ |
| (x) | Dividend | $\displaystyle 120$ |
| (xi) | Net factor income from abroad | $\displaystyle 20$ |
(b)
“Increase in per capita availability of goods and services necessarily means rise in welfare of the people of that country.”
Do you agree with the given statement ? Give valid reason in support of your answer.
(ii)
Define capital goods.
Marking-scheme solution
National Income (NNP$\displaystyle _{FC}$) = (iii) + (xi)
= $\displaystyle 720$ + $\displaystyle 20$
= ₹ $\displaystyle 740$ crore
Gross Domestic Product at Factor Cost (GDP$\displaystyle _{FC}$) = (iii) + (viii)
= $\displaystyle 720$ + $\displaystyle 200$
= ₹ $\displaystyle 920$ crore
(b)
No. An increase in per capita availability of goods and services does not necessarily mean a rise in the welfare of the people. An increase in the average availability of goods and services does not guarantee an equitable distribution of income in an economy. This is because the benefits of the rise in GDP may be concentrated in a few hands. This inequality may increase the gap between the rich and poor, thereby, reducing the welfare of the people of the country.
(ii)
Capital goods are those final goods which help in production of other goods and services and are not completely used up in the same year.
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CBSE Class 12 Economics past-paper question from the 2026board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.