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Economics · 2025 · 3 marks
National Income AccountingCircular Flow of Income and Methods of Calculating National Income3 marksApplyshort answer
CBSE 2025 · Region 7 · Set 1 · Q11
(a) Calculate the value of ‘Sales’ from the following data: S. No. Particulars Amount (in ₹ lakh) (i) Subsidies 200 (ii) Operating surplus 500 (iii)…
Calculate the value of ‘Sales’ from the following data :
| S. No. | Particulars | Amount (in ₹ lakh) |
| (i) | Subsidies | $\displaystyle 200$ |
| (ii) | Operating surplus | $\displaystyle 500$ |
| (iii) | Opening stock | $\displaystyle 100$ |
| (iv) | Closing stock | $\displaystyle 600$ |
| (v) | Intermediate consumption | $\displaystyle 3,000$ |
| (vi) | Consumption of fixed capital | $\displaystyle 700$ |
| (vii) | Profits | $\displaystyle 750$ |
| (viii) | Net Value Added at Factor Cost ($\displaystyle \mathrm{NVA_{FC}}$) | $\displaystyle 2,000$ |
State and explain any two precautions that must be taken while estimating national income by income method.
Marking-scheme solution
Value of Sales = (viii) – {(iv) – (iii)} + (v) – (i) + (vi)
= $\displaystyle 2,000$ – ($\displaystyle 600$ – $\displaystyle 100$) + $\displaystyle 3,000$ – $\displaystyle 200$ + $\displaystyle 700$
= ₹ $\displaystyle 5,000$ lakh
Two precautions to be taken while estimating National Income by Income method are:
Transfer Income should not be included as they are unilateral in nature.
Income from sale of second-hand goods should not be included as it does not add to the flow of goods and services in the economy in the current year.
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CBSE Class 12 Economics past-paper question from the 2025 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.