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Economics · 2022 · 2 marks
National Income AccountingCircular Flow of Income and Methods of Calculating National Income2 marksUnderstandvery short answer
CBSE 2022 · Region 2 · Set 1 · Q1
(a) State any two precautions to be adopted while estimating National Income by Income Method.
(a)
State any two precautions to be adopted while estimating National Income by Income Method.
OR
(b)
Distinguish between ‘Value of Output’ and ‘Value Addition’.
Marking-scheme solution
Two precautions to be taken while estimating National Income are:
(i)
Income from sale of shares is not included as such transactions are mere paper claims and do not lead to value addition. (There is no corresponding flow of goods and services)
(ii)
Windfall gains will not be included as there is no corresponding flow of goods and services.
Value of Output is the money value of all the final goods and services, produced during a year in an economy.
Whereas, Value added is the excess of value of output over the value of intermediate consumption.
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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.