✓ Board-verified
Economics · 2022 · 5 marks
National Income AccountingCircular Flow of Income and Methods of Calculating National Income5 marksApplylong answer
CBSE 2022 · Region 2 · Set 3 · Q11
Estimate the missing values (?), if the value of Gross Domestic Product at factor cost (GDP$\displaystyle _{fc}$) by Expenditure Method and Income Method is ₹ $\displaystyle 920$ crore :
S. No. Items Amount (in ₹ crore) (i) Government Final Consumption Expenditure ? (ii) Operating Surplus ? (iii) Gross Domestic Fixed Capital Formation $\displaystyle 250$ (iv) Mixed Income of Self-employed $\displaystyle 210$ (v) Change in Stock $\displaystyle 120$ (vi) Consumption of Fixed Capital $\displaystyle 140$ (vii) Compensation of Employees $\displaystyle 420$ (viii) Private Final Consumption Expenditure $\displaystyle 540$ (ix) Net Exports (–) $\displaystyle 60$ (x) Net Indirect Taxes $\displaystyle 80$ (xi) Employers’ Contribution to Social Security Schemes $\displaystyle 130$
| S. No. | Items | Amount (in ₹ crore) |
| (i) | Government Final Consumption Expenditure | ? |
| (ii) | Operating Surplus | ? |
| (iii) | Gross Domestic Fixed Capital Formation | $\displaystyle 250$ |
| (iv) | Mixed Income of Self-employed | $\displaystyle 210$ |
| (v) | Change in Stock | $\displaystyle 120$ |
| (vi) | Consumption of Fixed Capital | $\displaystyle 140$ |
| (vii) | Compensation of Employees | $\displaystyle 420$ |
| (viii) | Private Final Consumption Expenditure | $\displaystyle 540$ |
| (ix) | Net Exports | (–) $\displaystyle 60$ |
| (x) | Net Indirect Taxes | $\displaystyle 80$ |
| (xi) | Employers’ Contribution to Social Security Schemes | $\displaystyle 130$ |
Marking-scheme solution
GDP$\displaystyle _{FC}$ = Government Final Consumption Expenditure + (iii) + (v) + (viii) + (ix) – (x)
$\displaystyle 920$ = Government Final Consumption Expenditure + $\displaystyle 250$ + $\displaystyle 120$ + $\displaystyle 540$ + (–$\displaystyle 60$) – $\displaystyle 80$
Government Final Consumption Expenditure = ₹ $\displaystyle 150$ croresGDP$\displaystyle _{FC}$ = Operating Surplus + (iv) + (vi) + (vii)
$\displaystyle 920$ = Operating Surplus + $\displaystyle 210$ + $\displaystyle 140$ + $\displaystyle 420$
Operating Surplus = ₹ $\displaystyle 150$ crores
More from National Income Accounting
- To arrive at the value of Net Value Added at Market Price (NVA MP ), must be to/from Gross Value Added at…2025 · asked 3×
- Briefly explain the different phases of circular flow of income. OR In an economy, if the Real Gross Domestic…2022 · asked 3×
- Income generated from Aircrafts of Air India operating between Canada and England would be added to the…2026 · asked 3×
- Read the following text carefully: In India, after Covid-19 period, household and private sector consumption,…2023 · asked 3×
- Read the following passage carefully: The domestic product measures the value of all goods and services…2026 · asked 3×
- Read the following statements carefully: Statement I: Positive externalities refer to the benefits a firm/an…2026 · asked 3×
- Following are the steps to measure National Income (NNP FC ) by Value Added method: (i) Calculate Domestic…2026 · asked 3×
- Read the following Flow chart carefully and choose the correct option:2026 · asked 3×
CBSE Class 12 Economics past-paper question from the 2022board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.