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Economics · 2023 · 3 marks
National Income AccountingCircular Flow of Income and Methods of Calculating National Income3 marksUnderstandshort answer
CBSE 2023 · Region 3 · Set 2 · Q12
(a) Discuss briefly the three components of ‘operating surplus’.
(a)
Discuss briefly the three components of ‘operating surplus’.
OR
(b)
Defend or refute the following statement, with valid argument :
“Depreciation is fall in the value of an asset due to unexpected obsolescence”.
Marking-scheme solution
The components of operating surplus are -
Rent is a factor income earned by the owners for lending their services such as land, building etc.
Royalty is the income earned by a person/institution for lending Intellectual Property Rights and rights of sub soil assets.
Interest is the factor income earned by the owners for lending capital for production process.
Profit is a factor income earned for entrepreneurship.
The given statement is refuted as depreciation is the continuous fall in the value of an asset due to normal wear and tear or expected obsolescence. Value of fixed assets may fall owing to normal wear and tear or change in technology over a period of time.
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CBSE Class 12 Economics past-paper question from the 2023 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.