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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 3 · Set 2 · Q12
(a) State any three precautions to be taken while estimating national income by income method.
State any three precautions to be taken while estimating national income by income method.
On the basis of the given data, estimate the value of National Income :
| S.No. | Items | Amount (in ₹ crore) |
| (i) | Government Final Consumption Expenditure | $\displaystyle 200$ |
| (ii) | Private Final Consumption Expenditure | $\displaystyle 300$ |
| (iii) | Gross Domestic Fixed Capital Formation | $\displaystyle 80$ |
| (iv) | Net Exports | (–) $\displaystyle 20$ |
| (v) | Increase in Stock | $\displaystyle 20$ |
| (vi) | Consumption of Fixed Capital | $\displaystyle 15$ |
| (vii) | Indirect Taxes | $\displaystyle 60$ |
| (viii) | Subsidies | $\displaystyle 15$ |
| (ix) | Net Factor Income from Abroad | (–) $\displaystyle 40$ |
Marking-scheme solution
(a)
Three precautions to be taken while estimating National Income by Income method are:
Transfer income should not be included.
Windfall gains should not be included.
Income from sale of financial instruments (shares, bonds, debentures etc.) should not be included.
OR
(b)
National Income (NNP$\displaystyle _{FC}$) = (ii) + (i) + (iii) + (v) + (iv) − (vi) − {(vii) − (viii)} + (ix)
= $\displaystyle 300$ + $\displaystyle 200$ + $\displaystyle 80$ + $\displaystyle 20$ + (−$\displaystyle 20$) − $\displaystyle 15$ − $\displaystyle 60$ + $\displaystyle 15$ + (−$\displaystyle 40$)
= ₹ $\displaystyle 480$ crore
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CBSE Class 12 Economics past-paper question from the 2024 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.