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Economics · 2022 · 2 marks
National Income AccountingCircular Flow of Income and Methods of Calculating National Income2 marksRemembervery short answer
CBSE 2022 · Region 2 · Set 2 · Q3
(a) State any two precautions to be adopted while estimating National Income by Expenditure Method.
(a)
State any two precautions to be adopted while estimating National Income by Expenditure Method.
OR
(b)
Distinguish between ‘Final goods’ and ‘Intermediate goods’.
Marking-scheme solution
Two precautions to be adopted while estimating National Income by the Expenditure Method are:
Any expenditure on intermediate consumption should not be included, as it may lead to the problem of double counting.
Expenditure on transfer payments should not be included, as these do not lead to any value addition.
Final goods are those goods which are used either for consumption or investment purpose by the end user.
Intermediate goods refers to goods which are completely used up during the process of production of other goods.
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CBSE Class 12 Economics past-paper question from the 2022 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.