Class 12 Economics 2024 Board Exam

Identify the correct equation from the following :
(A) GDPMP = NNPFC + Depreciation
(B) NDPFC = NNPFC + Net Indirect Taxes
(C) GNPMP = GDPMP + Net Factor Income from Abroad
(D) NNPFC = NDPMP + Depreciation

On the basis of the data given below for an imaginary economy, estimate the value of Net Domestic Product at Factor Cost (NDPFC) :
S. No. Items Amount

S.No.	Particulars	Amount (in ₹ crore)
(i)	Gross Domestic Fixed Capital Formation	200
(ii)	Exports	50
(iii)	Government Final Consumption Expenditure	320
(iv)	Consumption of Fixed Capital	35
(v)	Household Final Consumption Expenditure	470
(vi)	Inventory Investment (Net) (–)	40
(vii)	Imports	60
(viii)	Net Indirect Taxes	50
(ix)	Net Factor Income from Abroad	20

(i) Elaborate the concept of Externalities with the help of suitable example.
(ii) Define Operating Surplus.

(a) Discuss briefly the concept of circular flow of income in a two-sector model.

“Real Gross Domestic Product (GDP) is a better indicator of economic growth of a nation as compared to the Nominal Gross Domestic Product (GDP).”
Do you agree with the given statement ? Justify your answer with a valid hypothetical numerical example.

On the basis of the data given below for an imaginary economy, estimate the value of Net Domestic Product at Factor Cost (NDPFC) :
S. No. Items Amount

S.No.	Particulars	Amount (in ₹ crore)
(i)	Gross Domestic Fixed Capital Formation	300
(ii)	Exports	70
(iii)	Government Final Consumption Expenditure	400
(iv)	Consumption of Fixed Capital	50
(v)	Household Final Consumption Expenditure	590
(vi)	Inventory Investment (Net) (–)	60
(vii)	Imports	80
(viii)	Net Indirect Taxes	50
(ix)	Net Factor Income from Abroad	40

On the basis of the data given below for an imaginary economy, estimate the value of Net Domestic Product at Factor Cost (NDPFC) :
S. No. Items Amount

S.No.	Particulars	Amount (in ₹ crore)
(i)	Gross Domestic Fixed Capital Formation	400
(ii)	Exports	80
(iii)	Government Final Consumption Expenditure	500
(iv)	Consumption of Fixed Capital	70
(v)	Household Final Consumption Expenditure	640
(vi)	Inventory Investment (Net) (–)	80
(vii)	Imports	90
(viii)	Net Indirect Taxes	60
(ix)	Net Factor Income from Abroad	50

Read the following statements carefully :
Statement 1 : Economic territory and political frontier of a nation are one and the same thing.
Statement 2 : American Embassy in India is a part of the economic territory of India.
In the light of the given statements, choose the correct alternative from the following :
(A) Statement 1 is true and statement 2 is false.
(B) Statement 1 is false and statement 2 is true.
(C) Both statements 1 and 2 are true.
(D) Both statements 1 and 2 are false.

On the basis of the data given below, estimate the value of Gross National Product at Factor Cost (GNPFC) :
S.No. Items Amount

S.No.	Particulars	Amount (in ₹ crore)
(i)	Wages and Salaries	2,000
(ii)	Rent and Interest	700
(iii)	Corporate Tax	500
(iv)	Undistributed Profit	300
(v)	Consumption of Fixed Capital	200
(vi)	Dividend	150
(vii)	Net factor income from abroad (–)	50

Read the following text carefully :
Decisions taken by factors of production in the production process often may affect the stakeholders indirectly. Such impacts at times are huge but are not accounted for, while estimating national income. Economists call them as externalities and they can be positive or negative.
In this regard, many economists suggest carbon pricing as an important tool to ensure ecological balance.
Carbon pricing tries to control greenhouse gas emissions by either placing a fee on emitting or offering subsidies on lesser emission. Through instruments like carbon tax, green cess, eco tax, etc. economists suggest moving towards greener technology eliminating such negative externalities.
On the basis of the given text and common understanding, answer the following questions :
(i) Define externalities.
(ii) Differentiate between positive and negative externalities.
(iii) Elaborate how and why carbon pricing should be promoted.