12th Standard CBSE National Income Accounting Sample Question Paper | QB365

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12th Standard CBSE National Income Accounting Sample Question Paper

Published on: 31/07/2019

National Income Accounting

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Questions + Answers key

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Std: 12th Standard CBSE - Biology

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Questions:

Generic 4

3 x 4 = 12

Explain any two precautions that should be taken while estimating National Income by
(a) valued added method, and
(b) income method.

Suppose the GDP at market price of a country in a particular year was Rs 1,100 crores. Net Factor Income from Abroad was Rs 100 crores. The value of indirect taxes - subsidies was Rs 150 crores and National Income was Rs 850 crores. Calculate the aggregate value of depreciation.

Define budget deficit and trade deficit. The excess of private investment over saving of a country in a particular year was Rs 2,000 crores. The amount of budget deficit was (-) Rs 1,500 crores. What was the volume of trade deficit of that country?

1 Marks

3 x 1 = 3

How rate of saving is calculated?

Define indirect tax.

Define corporation tax.

Generic 3

2 x 3 = 6

Giving reasons classify the following into intermediate products and final products:
(i) Computers installed in an office
(ii) Mobile sets purchased by a mobile dealer

Giving reasons classify the following into intermediate products and final products:
(i) Furniture purchased by a school
(ii) Chalks, dusters etc. purchased by a school

Fill up / 1 Marks

5 x 1 = 5

Consumption is a ___________ concept.

10.

_________ has a time dimension.

11.

_________ has no time dimension.

12.

In an economy, saving is an important ________.

13.

In an economy, consumption is an important _________.

True or False

5 x 1 = 5

14.

Personal disposable income is defined as income of all persons from all sources in a nation in a year.

(a)

True

(b)

False

15.

Personal income means that part of private income, which can be spent freely by residents of a nation.

(a)

True

(b)

False

16.

Import is a leakage of circular flow of income.

(a)

False

(b)

True

17.

National Income includes only transfer incomes, not the factor incomes.

(a)

True

(b)

False

18.

Stock is a dynamic concept.

(a)

True

(b)

False

Multiple Choice Question

5 x 1 = 5

19.

If the personal income is Rs 1,000 and the income tax is 10 percent, calculate Disposable Income.

(a)

Rs 990

(b)

Rs 1100

(c)

Rs 100

(d)

Rs 9

20.

If the private income is Rs 200 crores, the corporation tax and undistributed profit is Rs 25 crores, what will the personal income be?

(a)

Rs 225 crores

(b)

Rs 175 crores

(c)

Rs 8 crores

(d)

None of these

21.

\({ NDP }_{ FC }=\)

(a)

\({ GDP }_{ FC }-Indirect\quad taxes\)

(b)

\({ GDP }_{ FC }-Depreciation\)

(c)

\({ GDP }_{ FC }+Economic\quad subsidy\)

(d)

All of these

22.

Which of the given accounting year is followed in India?

(a)

1 January to 31 December

(b)

31 January to 1 December

(c)

1 April to 31 March

(d)

1 March to 28 February

23.

What is the main objective of National Income Accounting?

(a)

Income accounting at individual level

(b)

National Income or output accounting at aggregate level

(c)

Measurement of individual expenditure

(d)

All of these

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Answers Key:

Generic 4

3 x 4 = 12

(a) Following precautions are to be taken under value added method:
(i) The value of self-consumption output should be included in the national income.
(ii) Imputed rent on the owner occupied house should be taken into consideration while measuring the national income.
(iii) Value of the sale and purchase of second hand goods and property should not be included in national income.
(b) Following precautions are to be taken under income method:
(i) The income from the illegal activities such as theft, smuggling and gambling should not be included in the national income.
(ii) Windfall gains such as lottery should not be included.
(iii) Transfer payment such as unemployment allowance, old age pension, donation to the religious I places, etc. should not be included in the national income.

The following information is given:

Particulars	(Rs crores)
GDP at market price	1,100
Net Factor Income from Abroad	100
Net Indirect Taxes	150
National Income	850

National Income = + Net Factor Income from Abroad - Net Indirect Taxes - Depreciation
Substituting appropriate values from the table, we get:
850 = 1,100 + 100 - 150 - Depreciation
Depreciation = 1,100 + 100 - 150 - 850
= 1,200 - 1000
= 200
Thus, the aggregate value of depreciation is Rs 200 crores

Budget deficit means the excess of the government expenditure (G) over tax revenue (T).
Budget Deficit = G - T
Trade deficit means the excess of import (M) expenditure over the export revenue (X) earned by the economy.
Trade Deficit = M - X
Given: I - S = Rs 2000 crores
G - T = Rs 1,500 crores
Trade Deficit = (1-S) + (G-T)
= 2,000 + 1,500
= 3,500
Thus, the volume of trade deficit of the country is Rs 3500 crores.

1 Marks

3 x 1 = 3

()
Rate of saving is calculated as:
\(\frac { Net\quad Domestic\quad Saving }{ Net\quad Domestic\quad Product } \times 100\)

()
Indirect tax is a tax collected by an intermediary (seller) from the person who bears the ultimate economic burden of the tax (buyer). Its burden can be shifted by the tax payer on someone else.

()
Corporation tax is a tax on the income of the corporations.

Generic 3

2 x 3 = 6

(i) Computers installed in an office are final products as they are ready for final use and directly satisfy the users in the office.
(ii) Mobile sets purchased by a mobile dealer are intermediate products as they are purchased for resale.

(i) Furniture purchased by a school is a final product because it is used by the students and staff for final consumption. It is kind of investment by the school as the school will use the furniture for several years.
(ii) Chalks, dusters, etc. purchased by a school are final products as they are used by the final users, that is, teachers.

Fill up / 1 Marks

5 x 1 = 5