Class 12 Economics
(Economics: Unit 1 –National Income and Related Aggregates &
Unit 2 – Money & Banking)
Revision Worksheet – 01
Choose the correct option:
1. The difference between gross and net is: 6. Which of the following is another name for the
(a) Depreciation (b) NFIA average income of a country?
(c) Net Indirect Tax (d) Subsidies (a) Inflation rate
(b) Disposable income
(c) Per capita income
2. The difference between domestic income
(d) None of the above
and National income is____.
(a) NFIA (b) Net Indirect Tax
7. In the production of sugar, sugarcane is
(c) Depreciation (d) All of the above (a) a final good (b) a capital good
(c) an intermediate goo (d) none of these
3. In terms of Economics, the total value of
output (goods and services) produced and 8. NNPatMP = ________
income received in a year by the domestic (a) GNPatMP – Depreciation
residents of a country put together is called? (b) NDPatMP + Net factor income from
(a) Net National Product abroad
(b) Gross national product (c) NNPatFC + Net indirect taxes
(c) Gross national income (d) All of these
(d) National Income
9. What do you mean by Gross National
4. If NFIA is negative, Product?
(a) Factor income to abroad will be less than (a) The total value of goods and services
Factor income from abroad produced in the country
(b) Factor income to abroad will be equal to (b) The total value of all the transactions in the
Factor income from abroad country
(c) Factor income to abroad will be more than (c) The depreciation in the total value of goods
Factor income from abroad and services produced in the country
(d) None of the above (d) The total value of goods and services
produced in the country and the net factor
5. If NFIA is positive, income from abroad
(a) NDPFC = NNPFC
(b) NDPFC > NNPFC 10. Which one of the following is a flow variable?
(c) NDPFC < NNPFC
(d) None of the above (a) Consumption (b) Wealth
(c) Quantity of money (d) None of the
Revision Worksheet - 2
Answer or Solve:
1. How will you treat the following items in the calculation of Gross Domestic Product of India? Give
reasons for your answers.
(i) Profit earned by a branch of foreign bank in India.
(ii) Salaries of Indian employees working in the embassy of Japan in India
(iii) Salaries of residents of Japan working in the Indian embassy of Japan
2. Should the following be treated as normal resident of India? Give a reason for your answer.
(i) Foreigner working in the Indian embassy in Taiwan.
(ii) Indian working in the Asian Development Bank in the Philippines.
(iii) Indian student in the USA who has been living there for five years.
3. Calculate intermediate consumption from 5. Calculate Factor Income to abroad:
the following data: Particulars ₹in crores
Particulars ₹in
crores i) GNP at FC 4280
i) Value of Output 400 ii) Subsidies 80
ii) Net value added at factor cost 160 iii) Factor Income from abroad 400
iii) Depreciation 40 iv) Depreciation 480
iv) Subsidy 10 v) Indirect Taxes 100
v) Sales tax 30 vi) NDP at MP 3700
4. Calculate Indirect Taxes from the 6. From the following data calculate ‘Gross
following data: Value Added at factor cost.’
Particulars ₹in crores Particulars ₹in lakhs
i) Net indirect taxes 20
i) NDP at FC 55915 ii) Purchase of intermediate product 120
ii) Subsidies 1540 iii) Purchase of Machines 300
iii) Factor income from abroad 625 iv) Sales 250
iv) Consumption of Fixed Capital 1625 v) Consumption of fixed capital 20
vi) Factor income to abroad 865 vi) Change in stock 30
vii) GNP at MP 58350
Case Based Question:
Read the following case study paragraph carefully and answer the questions on the basis of the same.
The Reserve Bank of India raised inflation forecasts on the back of higher oil and other raw materials while it
maintained the growth forecast at 9.5% for FY22 despite anemic investment demand.
Governor Shaktikanta Das said inflation measured by the consumer price index (CPI) might remain close to the upper
tolerance band of 6% up to September expecting easing of pressure thereafter on kharif harvest arrivals. [RBI has
fixed inflation rate target in between 2%-6 %.]
The central bank projected CPI at 5.7% for FY22 compared to its earlier projection of 5.1%. “The supply-side drivers
could be transitory while demand-pull pressures remain inert, given the slack in the economy. A pre-emptive
monetary policy response at this stage may kill the nascent and hesitant recovery that is trying to secure a foothold in
extremely difficult conditions,” Das said.
Crude oil prices are volatile with implications for imported cost pressures on inflation, RBI said. “The combination of
elevated prices of industrial raw materials, high pump prices of petrol and diesel with their second-round effects, and
logistics costs continue to impinge adversely on cost conditions for manufacturing and services, although weak
demand conditions are tempering the pass-through to output prices and core inflation.
1. How does RBI promote growth process of country;
(a) By controlling price level in country
(b) By changing various interest rates and money supply
(c) By increasing supply of products
(d) All of above
2. Why does RBI fix the inflation target?
(a) To make growth process fast
(b) To make coordination with government
(c) To manage exchange rate
(d) To stabilize economy
3. Why increasing crude oil prices are matter of concern;
(a) Increasing crude oil prices are increasing transportation cost
(b) Increasing crude oil prices are making economy potentially unstable
(c) Increasing crude oil prices are volatizing growth process
(d) Increasing crude oil prices are adversely affecting demand
