NATIONAL INCOME AND RELATED AGGREGATES
BOARD PAPER 2022
1. Using a suitable example, distinguish between positive externalities and negative externalities. 2
2. Using a suitable example,distinguish between stock variables and flow variables. 2
3. Estimate the value of Nominal Gross Domestic Ptoduct(GDP) for a hypothetical economy. The value of
Real Gross Domestic Product (GDP) and Price Index are given as Rs 500 crores and 125 respectively. 3
4. Giving Valid reasons explain, which of the following will not be included in the estimation of National
income of India? 3
(i) Purchase of shares of Sethi Ltd. By an investor in the Bombay Stock Exchange..
(ii) Sararies paid by Indian Embassy situated at Japan to the local workers.
(iii) Depreciation on capital assets charged by firms.
(iv) Payment of indirect taxes by a firm
(v) Purchase of goods by foreign tourists.
5.
6.
7. State any two precautions to be adopted while estimating National Income by Income Method.
8. Discuss briefly the problem of ‘Double counting’,using a suitable example.
9. Distinguish between Real Gross Domestic Product and Nominal Dmestic Product, using a suitable
example.
10. Estimate the missing values (?), if the value of Gross Domestic Product at factor cost (GDPfc) by
Expenditure Method and Income Method is Rs 370 crore : 5
S. No. Items Amount (in Rs crore)
(i) Compensation of Employees 175
(ii) Private Final Consumption Expenditure 210
(iii) Employer’s contribution to social security Schemes 50
(iv) Net Indirect Taxes 20
(v) Net Exports (- ) 20
(vi) Government Final Consumption Expenditure ?
(vii) Operating Surplus ?
(viii) Gross Domestic Fixed Capital Formation 70
(ix) Mixed Income of Self-employed 40
(x) Change in Stock 60
(xi) Consumption of Fixed Capital 70
11. Calculate Net Value Added at Factor cost(NVAfc) 3
Items Rs in crores
i) Price per unit of output 20
ii) Output sold(units) 1250 units
iii) Excise duty 5,000
iv) depreciation 1,000
v) change in stock (-) 500
vi) single use producer 6,000
goods
12. Why there is a need to make distinction between final and intermediate goods?
13. Exports are not a part of ‘Net Factor income from Abroad’. Elaborate the reason behind the given
statement.
14. From the following data, show that the National Income will be same from both Income Method and
Expenditure Method : 5
S. No. Items Amount (in Rs crore)
(i) Net Exports (- ) 60
(ii) Net Indirect Taxes 150
(iii) Operating Surplus 740
(iv) Compensation of Employees 1,400
(v) Net Factor Income from Abroad 40
(vi) Mixed Income of Self-Employed 1,000
(vii) Net Domestic Fixed Capital Formation 500
(viii) Change in Stock ( -) 100
(ix) Depreciation 100
(x) Private Final Consumption Expenditure 2,000
(xi) Government Final Consumption Expenditure 1,000
15. (i) Calculate the operating surplus from the following data : 2
S.No. Items Amount (in Rs crore)
(i) Compensation of Employees 300
(ii) Indirect Taxes 200
(iii) Consumption of Fixed Capital 100
(iv) Subsidies 50
(v) Gross Domestic Product at Factor Cost (GDPfc) 650
16. State and discuss briefly the three main components of Net Factor Income from Abroad.
17. (a) Distinguish between Factor Income and Transfer Income. 2
(b) Distinguish between Domestic Income and National Income. 2
18. (a) (I) From the following data, calculate the value of operating surplus : 3
S.No. Items Amount in ( crore)
(i) Royalty 5
(ii) ) Rent 75
(iii) Interest 30
(iv) Net domestic product at factor cost 400
(v) Profit 45
(vi Dividends 20
(II) Distinguish between 'Fixed Investment' and 'Inventory Investment'. 2
19. (a) Distinguish between Consumption goods and Capital goods. 2
(b) “ National income includes income earned by factors pf production, within the domestic territory
only.”
20. On the basis of the following data, calculate the value of Gross Value Added (GVA) at Market Price :
3
S. No. Particulars Amount (in < lakh)
(i) Depreciation 20
(ii) Domestic Sales 200
(iii) Change in Stock ( -) 10
(iv) Exports 10
(v) Single Use Producer Goods 120
OR (b) Explain any two precautions that should be taken into account, while estimating National Income
by Expenditure method.
