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12th Standard English Medium Economics Subject National Income Creative 2 Mark Questions with Solution Part - I

Published on: 23/06/2021

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Std: 12th Standard - Economics

chapter: - Creative Questions

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Questions:

Generic 2

5 x 2 = 10

How the economy is divided based on Social Accounting?

What do you mean by Disposable Income?

What is GDP? Write the formula.

What do you mean by Real Income?

Write the formula for calculating per capita income.

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Answers Key:

Generic 2

5 x 2 = 10

(i) Firms
(ii) House holds
(iii) Government
(iv) Rest of the world
(v) Capital Sector

Disposable Income is an individuals income after the payment of income tax. This is the amount available for households for consumption.

GDP is the total market value of final goods and services produced within the country during a year.
GDP by expenditure methods at market prices = C + I + G + (X - M)

(i) Nominal income is expressed in terms of a general price level of a particular year. In other words, real income is the buying power of nominal income.
(ii) The real income is derived as follows
National Income at constant price = National Income at current price \(\div\) P₁/P₀

Per capita income = \(\frac{National\ Income}{Population}\)