National Income Accounting

Previous Years' CBSE Board Questions

2.1 Some Basic Concepts of Macroeconomics

MCO

Depreciation of fixed capital assets refer to:

1. Normal wear and tear
2. Foreseen obsolescence
3. Normal wear and tear and foreseen obsolescence
4. Unforeseen obsolescence. (Delhi 2016)

1. Which of the following is not a flow?
2. Capital (b) Income
3. Investment (d) Depreciation (Delhi 2015 C)

1. Which of the following is a stock?
2. Wealth (b) Savings
3. Exports (d) Profits (Al 2015 C)

VSA (1/2 mark)

1. Distinguish between 'Fixed Investment and Inventory Investment'. (Term-II, 2021-22)
2. Income
3. Distinguish between stock and flow variables. (Term-II, 2021-22)

Factors of Production

1. State whether the following statement is true or false: "Expected obsolescence is included in depreciation." (2020)

1. Define stocks. (Delhi 2016)

Household Firms

1. Define flows. (Al 2016) R

Goods and Services

œ Expenditure

1. Define consumption goods. (Delhi 2014 C)
2. Give two examples of intermediate goods. (Delhi 2014 C)

Define investment. (Delhi 2014 C)

Give the meaning of depreciation. (AI 2014 C)

SAI (3 marks)

1. Calculate the value of "Change in Stock" from the following data:

"Final goods include only those goods which are

consumed by the households". Defend or refute the

given statement with valid reason. (2020)

1. Give any two examples of flow concept. (2019)
2. What are capital goods? How are they different from consumption goods? (2018)
3. Distinguish between stocks and flows. Give an example of each. (AI 2014 C) R

(4 marks)

Distinguish between intermediate goods and final

goods. Give an example of each. (Delhi 2015 C)

2.2 Circular Flow of Income and

Methods of Calculating National

Income

MCQ

Choose the correct alternative to fill in the blanks in

(i) and (ii) in the figure.

1. (b) Factor, Production
2. (d) National, Consumption (2023)

Operating Surplus does not include ____ (d)

1. Interest
2. Rent
3. Profit

VSA (1 mark)

Explain the circular flow of income.

(Delhi 2015 C, Al 2015 C, Delhi 2014 C) (An

Amount S.No. Items (in ₹ Crore)

1. Sales 400 Net Value Added at factor
2. 200 cost (NVA_FC)
3. Subsidies 10
4. Change in Stock 7
5. Depreciation 40 Intermediate

• Vi. Consumption 100

SAI (3 marks)

"While estimating Gross Domestic Product (GDP) by

expenditure method, entire focus is on expenditures

incurred by the residents of the country. Do you

agree with the given statement? Give valid reason in

support of your answer. (2023)

(2020)

(iii) Net change in stocks (-)10 (v)

1. Exports 10

How should the following be treated in estimating National Income of a country? Give valid reasons.

1. Profits earned by Foreign Banks in India.
2. Expenditure on upgradation of fixed asset by a

firm. (2023)

On the basis of the following data, calculate the value of Gross Value Added (GVA) at Market Price:

Amount 5.No. Particulars (in ₹ lakh)

1. Depreciation 20
2. Domestic Sales 200
3. Change in stock (-) 10
4. Exports 10
5. Single Use Producer Goods 120

What any four precautions should be taken while

estimating national income by income method?

(Term-II, 2021-22, AI 2015 C) R

32. From the following data, calculate net value added at

factor cost. (₹ Lacs)

1. Sales 300
2. (iii) Depreciation 30 (iv) Intermediate consumption 120
3. Exports 50 (vi) Change in stock 20 (vii) Net indirect taxes 15 (viii) Factor income to abroad 10 (Delhi 2015 C)

(Term-II, 2021-22)

1. Giving valid reasons, explain how the following would be treated while estimating domestic income?
2. Payment made by a Japanese tourist for goods purchased in India.
3. Broker's commission on the sale of second hand goods. (Term-II, 2021-22)

(AI 2015 C)

"Circular flow principle is based on the assumption that one's expenditure will become other's income". Explain the given statement. (2020)

1. Define the problem of double counting in the computation of national income. State any two approaches to correct the problem of double

counting. (2019)

1. Find Net Value Added at factor cost :

(₹ Lacs)

1. Durable use producer goods with a life span of 10 years
2. Single use producer goods
3. Sales
4. Unsold output produced during the year
5. Taxes on production (Delhi 2016)

Calculate Gross Value Added at factor cost.

(₹ in Crore)

(i) Domestic sales 3000

1. (iii) Depreciation 300 (iv) Intermediate consumption 2000
2. Exports 500
3. following data: (₹ in Lacs)
4. (ii) Change in stock 50 (iii) Net indirect taxes 70
5. Sales 500
6. Find Net Value Added at market price: (v) Consumption of fixed capital 20
7. Imports 40
8. Fixed capital good with a life (Delhi 2014 C)

span of 5 years 36. From the following data calculate "Net Value Added

1. Raw materials at factor cost":
2. Sales (₹ in Lacs)
3. Net change in stock (ii) Sales 400
4. Taxes on production (iii) Change in stock (-)20

(Delhi 2016) (iii) Intermediate consumption 200

(iv) Net indirect taxes 40

(vi)

1. Exports 50

Find the Gross Value Added at market price :

(₹ Lacs)

1. Depreciation
2. Domestic sales

SAII (4 marks)

33. Describe the expenditure method of calculating

Gross Domestic Product at market price.