Class 12 Economics 2017 Board Exam

Explain with the help of an example, the basis of classifying goods into final goods and intermediate goods.

Explain the precautions that should be taken while estimating national income by expenditure method.
OR
Will the following be included in the domestic product of India ? Give reasons for your answer.
(a) Profits earned by foreign companies in India
(b) Salaries of Indians working in the Russian Embassy in India
(c) Profits earned by a branch of State Bank of India in Japan

Calculate (a) National Income, and (b) Net National Disposable Income :

S.No.	Particulars	Amount (₹ in crores)
(i)	Compensation of employees	2,000
(ii)	Rent	400
(iii)	Profit	900
(iv)	Dividend	100
(v)	Interest	500
(vi)	Mixed income of self-employed	7,000
(vii)	Net factor income to abroad	50
(viii)	Net exports	60
(ix)	Net indirect taxes	300
(x)	Depreciation	150
(xi)	Net current transfers to abroad	30

Explain the circular flow of income.

Explain the precautions that are taken while estimating national income by value added method.
OR
Will the following be included in the national income of India ? Give reasons for your answer.
(a) Financial assistance to flood victims
(b) Profits earned by the branches of a foreign bank in India
(c) Salaries of Indians working in the American Embassy in India

Calculate the (a) Net National Product at market price, and (b) Gross National Disposable Income :

S.No.	Particulars	Amount (₹ in crores)
(i)	Mixed income of self-employed	8,000
(ii)	Depreciation	200
(iii)	Profit	1,000
(iv)	Rent	600
(v)	Interest	700
(vi)	Compensation of employees	3,000
(vii)	Net indirect taxes	500
(viii)	Net factor income to abroad	60
(ix)	Net exports (–)	50
(x)	Net current transfers to abroad	20

Distinguish between stocks and flows. Give an example of each.

Calculate the (a) Gross National Product at market price, and (b) Net National Disposable Income :

S.No.	Particulars	Amount (₹ in crores)
(i)	Compensation of employees	2,500
(ii)	Profit	700
(iii)	Mixed income of self-employed	7,500
(iv)	Government final consumption expenditure	3,000
(v)	Rent	400
(vi)	Interest	350
(vii)	Net factor income from abroad	50
(viii)	Net current transfers to abroad	100
(ix)	Net indirect taxes	150
(x)	Depreciation	70
(xi)	Net exports	40

Demand deposits include (Choose the correct alternative)
(a) Saving account deposits and fixed deposits
(b) Saving account deposits and current account deposits
(c) Current account deposits and fixed deposits
(d) All types of deposits

Explain “difficulty in storing wealth” problem faced in the barter system of exchange.
OR
Explain the “medium of exchange” function of money.