Chapter 9 - National Income Economics Solutions for Class 12 Commerce Economics

Chapter 9 - National Income

Economics Solutions for Class 12 Commerce Economics

Fill in the blanks with appropriate alternatives given in the brackets.

Match the following groups

1) National income is computed every year.

2) Inclusion of value of intermediate goods leads to double counting.

3) GDP includes net income from abroad.

4) Financial year in India is a leap year.

5) Services of housewives are included in national income.

Define or explain the following concepts:

1) Final goods

2) National income

3) Personal income

4) Depreciation

Give reason or explain the following statements:

1) Income from second hand sale of goods is excluded from national income.

2) National income at factor cost includes subsidy.

3) National income estimates are accurate in India.

4) Old age pension is transfer income.

5) Paid services are included in national income.

Distinguish between:

1) Gross national product and Gross domestic product

2) Net national product and Net domestic product.

3) Output method of measuring national income and Income method of measuring national income.

4) Gross National Product and Net National Product

5) National income at market prices and national income at factor cost

Write short notes on:

1) Value added approach

2) Expenditure method of measuring national income.

3) Circular flow of national income

4) Personal disposable income

5) Net national product at factor cost

Answer the following questions:

1) What is double counting of national income?

2) What are the features of national income?

3) Explain the concept of Gross domestic product at market prices.

4) State the precautions while using expenditure method to measure national income.

5) Explain the income method of measuring national income.

State with reasons whether you agree or disagree with the following statements:

There are many conceptual or theoretical difficulties in the measurement of national income.

Many precautions are to be taken while estimating national income by income method.

Gross National Product and Gross Domestic Product are the same concepts.

The money value of intermediate goods is not included in the estimation of national income.

Answer in detail:

Explain the practical or Statistical difficulties involved in the estimation of national income.

Explain the Output method of measuring National income.

Explain the 'Final Good Approach' to avoid double counting of goods and services in the estimation of national income.