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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 2 · 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 $\displaystyle 300$ (ii) Exports $\displaystyle 70$ (iii) Government Final Consumption Expenditure $\displaystyle 400$ (iv) Consumption of Fixed Capital $\displaystyle 50$ (v) Household Final Consumption Expenditure $\displaystyle 590$ (vi) Inventory Investment (Net) (–) $\displaystyle 60$ (vii) Imports $\displaystyle 80$ (viii) Net Indirect Taxes $\displaystyle 50$ (ix) Net Factor Income from Abroad $\displaystyle 40$
(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 | $\displaystyle 300$ |
| (ii) | Exports | $\displaystyle 70$ |
| (iii) | Government Final Consumption Expenditure | $\displaystyle 400$ |
| (iv) | Consumption of Fixed Capital | $\displaystyle 50$ |
| (v) | Household Final Consumption Expenditure | $\displaystyle 590$ |
| (vi) | Inventory Investment (Net) | (–) $\displaystyle 60$ |
| (vii) | Imports | $\displaystyle 80$ |
| (viii) | Net Indirect Taxes | $\displaystyle 50$ |
| (ix) | Net Factor Income from Abroad | $\displaystyle 40$ |
(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)
= $\displaystyle 590$ + $\displaystyle 400$ + $\displaystyle 300$ + (–$\displaystyle 60$) + ($\displaystyle 70$ – $\displaystyle 80$) – $\displaystyle 50$ – $\displaystyle 50$
= ₹ $\displaystyle 1,120$ 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.