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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 5 · Set 1 · Q12
(I)From the following data, calculate the value of operating surplus :S.No. Items Amount in (₹ crore) (i) Royalty $\displaystyle 5$ (ii) Rent $\displaystyle 75$ (iii) Interest $\displaystyle 30$ (iv) Net domestic product at factor cost $\displaystyle 400$ (v) Profit $\displaystyle 45$ (vi) Dividends $\displaystyle 20$
(II)Distinguish between 'Fixed Investment' and 'Inventory Investment'.(I)From the following data, calculate the value of compensation of employees (COE) :S.No. Items Amount in (₹ crore) (i) Old age pension $\displaystyle 2,000$ (ii) Wages and salaries in cash $\displaystyle 60,000$ (iii) Rent free accommodation to employees $\displaystyle 30,000$ (iv) Employer's contribution to provident fund $\displaystyle 7,500$ (v) Payment of life insurance premium by the employees $\displaystyle 2,500$ (vi) Contribution to provident fund by employees $\displaystyle 35,000$
(II)Distinguish between stock and flow variables.
(I)
From the following data, calculate the value of operating surplus :
| S.No. | Items | Amount in (₹ crore) |
| (i) | Royalty | $\displaystyle 5$ |
| (ii) | Rent | $\displaystyle 75$ |
| (iii) | Interest | $\displaystyle 30$ |
| (iv) | Net domestic product at factor cost | $\displaystyle 400$ |
| (v) | Profit | $\displaystyle 45$ |
| (vi) | Dividends | $\displaystyle 20$ |
(II)
Distinguish between 'Fixed Investment' and 'Inventory Investment'.
(I)
From the following data, calculate the value of compensation of employees (COE) :
| S.No. | Items | Amount in (₹ crore) |
| (i) | Old age pension | $\displaystyle 2,000$ |
| (ii) | Wages and salaries in cash | $\displaystyle 60,000$ |
| (iii) | Rent free accommodation to employees | $\displaystyle 30,000$ |
| (iv) | Employer's contribution to provident fund | $\displaystyle 7,500$ |
| (v) | Payment of life insurance premium by the employees | $\displaystyle 2,500$ |
| (vi) | Contribution to provident fund by employees | $\displaystyle 35,000$ |
(II)
Distinguish between stock and flow variables.
Marking-scheme solution
(I)
Operating Surplus = (i) + (ii) + (iii) + (v)
= $\displaystyle 5$ + $\displaystyle 75$ + $\displaystyle 30$ + $\displaystyle 45$
= ₹ $\displaystyle 155$ crore
(II)
Fixed investment refers to addition to the stock of fixed assets in the hands of producers during an accounting year.
Whereas, inventory investment is addition to the stock of inventory (unsold finished goods, semi-finished goods, raw material) with the producers during an accounting year.
(I)
Compensation of Employees (COE) = (ii) + (iii) + (iv)
= $\displaystyle 60,000$ + $\displaystyle 30,000$ + $\displaystyle 7,500$
= ₹ $\displaystyle 97,500$ crore
(II)
Stock refers to that quantity of an economic variable which is measured at a particular point of time.
Whereas, flow is that quantity of economic variable which is measured over a period of time.
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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.