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Economics · 2022 · 5 marks
National Income AccountingCircular Flow of Income and Methods of Calculating National Income5 marksApplylong answer
CBSE 2022 · Region 2 · Set 1 · 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 ₹ $\displaystyle 370$ crore :
S. No. Items Amount (in ₹ crore) (i) Compensation of Employees $\displaystyle 175$ (ii) Private Final Consumption Expenditure $\displaystyle 210$ (iii) Employers’ Contribution to Social Security Schemes $\displaystyle 50$ (iv) Net Indirect Taxes $\displaystyle 20$ (v) Net Exports (–) $\displaystyle 20$ (vi) Government Final Consumption Expenditure ? (vii) Operating Surplus ? (viii) Gross Domestic Fixed Capital Formation $\displaystyle 70$ (ix) Mixed Income of Self-employed $\displaystyle 40$ (x) Change in Stock $\displaystyle 60$ (xi) Consumption of Fixed Capital $\displaystyle 70$
| S. No. | Items | Amount (in ₹ crore) |
| (i) | Compensation of Employees | $\displaystyle 175$ |
| (ii) | Private Final Consumption Expenditure | $\displaystyle 210$ |
| (iii) | Employers’ Contribution to Social Security Schemes | $\displaystyle 50$ |
| (iv) | Net Indirect Taxes | $\displaystyle 20$ |
| (v) | Net Exports | (–) $\displaystyle 20$ |
| (vi) | Government Final Consumption Expenditure | ? |
| (vii) | Operating Surplus | ? |
| (viii) | Gross Domestic Fixed Capital Formation | $\displaystyle 70$ |
| (ix) | Mixed Income of Self-employed | $\displaystyle 40$ |
| (x) | Change in Stock | $\displaystyle 60$ |
| (xi) | Consumption of Fixed Capital | $\displaystyle 70$ |
Marking-scheme solution
GDP$\displaystyle _{FC}$ = (ii) + Government Final Consumption Expenditure + (viii + x) + (v) – (iv)
$\displaystyle 370$ = $\displaystyle 210$ + Government Final Consumption Expenditure + ($\displaystyle 70$ + $\displaystyle 60$) + (−$\displaystyle 20$) − $\displaystyle 20$Government Final Consumption Expenditure = ₹ $\displaystyle 70$ croreGDP$\displaystyle _{FC}$ = (i) + Operating Surplus + (ix) + (xi)
$\displaystyle 370$ = $\displaystyle 175$ + OS + $\displaystyle 40$ + $\displaystyle 70$Operating Surplus = ₹ $\displaystyle 85$ croreMore from National Income Accounting
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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.