✓ 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 2 · Q12
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) Consumption of Fixed Capital $\displaystyle 170$ (ii) Change in Stock $\displaystyle 140$ (iii) Mixed Income of Self-employed $\displaystyle 180$ (iv) Operating Surplus ? (v) Gross Domestic Fixed Capital Formation $\displaystyle 140$ (vi) Government Final Consumption Expenditure ? (vii) Net Exports (−) $\displaystyle 50$ (viii) Net Indirect Taxes $\displaystyle 60$ (ix) Private Final Consumption Expenditure $\displaystyle 470$ (x) Compensation of Employees $\displaystyle 375$ (xi) Employers’ Contribution to Social Security Schemes $\displaystyle 150$
| S. No. | Items | Amount (in ₹ crore) |
| (i) | Consumption of Fixed Capital | $\displaystyle 170$ |
| (ii) | Change in Stock | $\displaystyle 140$ |
| (iii) | Mixed Income of Self-employed | $\displaystyle 180$ |
| (iv) | Operating Surplus | ? |
| (v) | Gross Domestic Fixed Capital Formation | $\displaystyle 140$ |
| (vi) | Government Final Consumption Expenditure | ? |
| (vii) | Net Exports | (−) $\displaystyle 50$ |
| (viii) | Net Indirect Taxes | $\displaystyle 60$ |
| (ix) | Private Final Consumption Expenditure | $\displaystyle 470$ |
| (x) | Compensation of Employees | $\displaystyle 375$ |
| (xi) | Employers’ Contribution to Social Security Schemes | $\displaystyle 150$ |
Marking-scheme solution
GDP$\displaystyle _{fc}$ = (ii) + (v) + Government Final Consumption Expenditure + (vii) − (viii) + (ix)$\displaystyle 920$ = $\displaystyle 140$ + $\displaystyle 140$ + Government Final Consumption Expenditure + (−$\displaystyle 50$) − $\displaystyle 60$ + $\displaystyle 470$Government Final Consumption Expenditure = ₹ $\displaystyle 280$ croreGDP$\displaystyle _{fc}$ = (x) + Operating Surplus + (iii) + (i)$\displaystyle 920$ = $\displaystyle 375$ + Operating Surplus + $\displaystyle 180$ + $\displaystyle 170$Operating Surplus = ₹ $\displaystyle 195$ crore
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.