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Economics · 2024 · 3 marks
National Income AccountingCircular Flow of Income and Methods of Calculating National Income3 marksApplyshort answer
CBSE 2024 · Region 1 · Set 1 · Q11
On the basis of the data given below for an imaginary economy, estimate the value of Net Domestic Product at Factor Cost (NDP$\displaystyle _{FC}$) :S. No. Items Amount (in ₹ crore) (i) Gross Domestic Fixed Capital Formation $\displaystyle 200$ (ii) Exports $\displaystyle 50$ (iii) Government Final Consumption Expenditure $\displaystyle 320$ (iv) Consumption of Fixed Capital $\displaystyle 35$ (v) Household Final Consumption Expenditure $\displaystyle 470$ (vi) Inventory Investment (Net) (–) $\displaystyle 40$ (vii) Imports $\displaystyle 60$ (viii) Net Indirect Taxes $\displaystyle 50$ (ix) Net Factor Income from Abroad $\displaystyle 20$
(b)Elaborate the concept of Externalities with the help of suitable example.(ii)Define Operating Surplus.
On the basis of the data given below for an imaginary economy, estimate the value of Net Domestic Product at Factor Cost (NDP$\displaystyle _{FC}$) :
| S. No. | Items | Amount (in ₹ crore) |
| (i) | Gross Domestic Fixed Capital Formation | $\displaystyle 200$ |
| (ii) | Exports | $\displaystyle 50$ |
| (iii) | Government Final Consumption Expenditure | $\displaystyle 320$ |
| (iv) | Consumption of Fixed Capital | $\displaystyle 35$ |
| (v) | Household Final Consumption Expenditure | $\displaystyle 470$ |
| (vi) | Inventory Investment (Net) | (–) $\displaystyle 40$ |
| (vii) | Imports | $\displaystyle 60$ |
| (viii) | Net Indirect Taxes | $\displaystyle 50$ |
| (ix) | Net Factor Income from Abroad | $\displaystyle 20$ |
(b)
Elaborate the concept of Externalities with the help of suitable example.
(ii)
Define Operating Surplus.
Marking-scheme solution
Net Domestic Product at Factor Cost (NDP$\displaystyle _{FC}$) = (v)+(iii)+(i)+(vi)+(ii-vii)-(iv)-(viii)
= $\displaystyle 470$+$\displaystyle 320$+$\displaystyle 200$+(-$\displaystyle 40$)+($\displaystyle 50$-$\displaystyle 60$)-$\displaystyle 35$-$\displaystyle 50$
= ₹ $\displaystyle 855$ crore
(b)
Externalities refer to benefits/harms which are caused by one entity to another without being paid/penalised for it.
For example: Newly developed public park
(ii)
Factor income earned in the form of rent, royalties, interest and profits are together called ‘Operating Surplus’.
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CBSE Class 12 Economics past-paper question from the 2024board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.