RKG INSTITUTE
B - 193, Sector - 52, Noida
CLASS 12 - ECONOMICS
National Income Worksheet
1.
Aggregation is involved in:
a) Both microeconomics and
[1]
b) macroeconomics
macroeconomics
c) None of these
2.
3.
d) microeconomics
Which of the following is an example of consumer non-durable good?
a) Bread
b) Clothes
c) Milk
d) Both Milk and Bread
Stock is a concept which:
a) Cannot be measured at a particular
point of time
c) is time dimensional
[1]
[1]
b) is measured at a particular point of
time
d) is measured at a particular period of
time
4.
Which of the following will be included in gross national product of India? (Choose the correct [1]
alternative)
a) None of these
b) Profits earned by a foreign company
in India
c) Earnings from sale of bonds to the
investors
5.
6.
7.
d) Salary paid to Americans working in
Indian Embassy in America
Can the net indirect taxes be positive?
[1]
a) Never
b) Yes
c) No
d) Can’t say
GDPFC is equal to
[1]
a) NDPFC + depreciation
b) NDPMP - depreciation
c) NDPFC + subsidies
d) NDPMP + depreciation
Which of the following is not correct?
a) NNP at Market Price = GNP at market
price + Depreciation
c) NDP at Market Price = NNP at market
price - Net factor income from
[1]
b) NDP at Factor Cost = NDP at market
price - Indirect taxes + Subsidies
d) GDP at Factor Cost = NDP at factor
cost + Depreciation
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abroad
8.
9.
The impact of an externality is:
[1]
a) negative
b) positive
c) neither positive nor negative
d) either positive or negative
Which of the following will you include while estimating national income by expenditure
[1]
method?
a) Purchase of new car by a household
b) Consumption of fixed capital
c) Net indirect taxes
d) Purchase of raw materials by a
producer
10.
Which of the following will you include while estimating domestic product of India?
a) Salaries paid to Koreans working in
b) Rent received by resident Indian
the Indian embassy in Korea
c) Salaries of Indians working in the
from his property in Singapore
d) Profits earned by a branch of an
Japanese Embassy in India
11.
12.
[1]
American bank in India
Value added refers to:
[1]
a) production of durable goods
b) expenditure on intermediate goods
c) output-intermediate consumption
d) production of non-durable goods
Remittances from a relative working abroad are:
[1]
a) Included in national income
b) Transfer payments
c) Both not included in national income
d) Not included in national income
and transfer payments
13.
Broker's commission on sale and purchase of second-hand goods is included in national
[1]
income because:
a) None of these
b) It is a part of gross domestic capital
formation
c) It is a part of compensation of
employees
14.
d) It is an income earned for rendering
productive services
________ is what production units actually receive for distribution of income among the
[1]
owners of factors of production.
15.
a) NNPfc
b) NDPfc
c) GDPmp
d) NNPmp
Gross National product at market price is a money value of all final goods and services
[1]
produced by a country during an accounting year excluding net factor income from abroad.
16.
a) Can’t say
b) 0
c) TRUE
d) Never
State True or False:
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a)
GDP growth as an index of welfare loses its significance if there is a deep economic divide
in the economy.
b)
Domestic Income of a country can be more than its National income.
c)
Ceasefire violations by Pakistan have led to the death of many Indian soldiers. The
payment of family pension to the families of such soldiers will be included in the national
income.
d)
Gross domestic capital formation is always greater than gross fixed capital formation.
e)
Value addition occurs even when goods do not undergo any material transformation.
f)
Income tax and corporate tax are not included in the estimation of national income.
g)
Goods produced but retained for self-use (and not sold in the market) are not included in
the estimation of national income.
h)
Mixed-income of the self-employed includes transfer payments.
i)
In the estimation of GDP (using expenditure method), we focus only on expenditure by
the residents of a country.
17.
Fill in the blanks:
a)
[12]
Higher production of ________ goods leads to a higher level of welfare of the economy.
(consumption/capital)
b)
Study of price behaviour in India will come under the preview of ________.
(microeconomics/macroeconomics)
c)
₹2,000 note lying in the wallet of Rohini, a student is an example of ________ (stock/flow)
variable.
d)
________ investment refers to the change in stock during the year. (Fixed/Inventory)
e)
Transfer payments refer to payments which are made without any exchange of ________
and ________.
f)
Fall in the value of GNP deflator points to a ________ in the price level between the base
year and the current year. (rise, fall)
g)
Income tax is treated as ________ in the estimation of national income. (factor
income/transfer income)
h)
________ Include land, labour, capital and entrepreneurship. (Factor inputs/Non-factor
inputs)
i)
A base year is the ________ year of a series of years in an economic index. (first/last)
j)
Value of Output = Sales, if the entire output of the year is ________ by the producers during
the year. (sold/stocked)
k)
l)
18.
19.
Nominal GDP
Real GDP
× 100 =
________. (GDP deflator; Money multiplier)
________ is the expected decrease in the value of fixed capital assets due to its general use.
Match the following-:
[1]
(a) Fee paid to mechanic paid by a firm
(i) Factor payment
(b) Taking care of old Parents
(ii) Intermediate consumption
(c) Payment of interest by a bank to an individual
(iii) Investment expenditure
(d) Purchase taxi by taxi driver
(iv) Generation of services
Match the following-:
(a) Nominal GDP
[1]
(i) GDP - Depreciation
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20.
21.
22.
23.
24.
(b) NDP
(ii) Quantity x Prices during the accounting year
(c) Real GDP
(iii)
(d) GDP Deflator
(iv) Quantity x Prices during the base year
GDP at current prices
GDP at contant prices
× 100
Match the following-:
[1]
(a) Factor Income
(i) Narrow concept
(b) Transfer Income
(ii) Earning concept
(c) Domestic Income
(iii) Broad concept
(d) National income
(iv) Receipt concept
Match the following-:
[1]
(a) Real GDP
(i) Price index
(b) Mixed income
(ii) GDP at constant prices
(c) Nominal GDP
(iii) Self employed income
(d) GDP deflator
(iv) GDP at current prices
Match the following-:
[1]
(a) Income method ,other name
(i) Industrial origin method
(b) Product method ,other name
(ii) Factor payment method
(c) Expenditure method ,other name
(iii) Price index method
(d) GDP deflator
(iv) Income disposal method
Match the following-:
[1]
(a) Compensation of employees
(i) Land
(b) Rent
(ii) Capital
(c) Interest
(iii) Entrepreneur
(d) Profit
(iv) Labour
Read the following extract and answer the following questions:
[4]
Normal residents of our country include citizens of our country who normally resides in the
country and whose centre of economic interest lies in the country, citizens of other nations
who continue to live in our country beyond a period of one-year and whose centre of
economic interest lies in our country and also citizens of our country working in international
organisations or foreign embassies located in our country.
In contrast, those foreigners who visit our country for travelling, recreation, holidays, medical
treatment, studies, conferences, sports etc will not be treated as normal residents of our
country an also there officials or diplomats and members of armed forces of a foreign country
posted in our country and international organisations located here will be treated as normal
residents of our country.
i. Indians working in USA embassy in India is a ________. (normal residents, non residents)
ii. The European citizen living in Idia for a period of more that one year for a purpose other
than study or medical is ________. (non-resident/normal resident)
iii. Japanese working in the World health organisation located in India is ________. (normal
resident, non-resident)
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iv. The German director of the office of International monetary fund located in India is a
________. (non resident, normal resident)
25.
Read, the following hypothetical Case Study, carefully and answer the question:
[4]
The expenditure method is a system for calculating gross domestic product (GDP) that
combines consumption, investment, government spending, net exports It is the most common
way to estimate GDP. It says everything that the private sector, including consumers and
private firms, and government spend within the borders of a particular country, must add up
to the total value of all finished goods and services produced over a certain period of time.
This method produces nominal GDP which must then be adjusted for inflation to result in the
real GDP.
The expenditure method is the most widely used approach for estimating GDP, which is a
measure of the economy's output produced within a country's borders irrespective of who
owns the means to production. The GDP under this method is calculated by summing up all of
the expenditures made on final goods and services. There are four main aggregate
expenditures that go into calculating GDP: consumption by households, investment by
businesses, government spending on goods and services, and net exports.
i. ________ method is also known as consumption method. (expenditure, income)
ii. Expenditure by the farmers on the purchase of tractors or threshers comes under the head
of ________ expenditure. (private final consumption, investment)
iii. While calculating national income through expenditure method ________ is taken. (exportsimports, exports)
iv. Expenditure on the purchase of goods for consumption by the defense personnel comes
under ________ of the expenditure method. (private final consumption, government final
consumption)
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