Class 12 Economics 2025 Board Exam

From the items given in Column-I and Column-II, choose the correct pair:

Column I	Column II
(a) Income from Property	(i) Old age pension
(b) Income from Entrepreneurship	(ii) Profit
(c) Mixed Income	(iii) Rent free accommodation from an employer
(d) Compensation of Employees	(iv) Interest from capital

(a) Calculate the value of Net Value Added at Factor Cost (NVAfc):

S. No.	Particulars	Amount (In ₹ crore)
(i)	Operating Surplus	3,740
(ii)	Increase in unsold stock	600
(iii)	Sales	10,625
(iv)	Purchase of raw materials	2,625
(v)	Consumption of fixed capital	500
(vi)	Subsidies	400
(vii)	Indirect taxes	1,200

OR

(b) Distinguish between Net Factor Income from Abroad (NFIA) and Net Exports (X – M).

(a) (i) Explain any two precautions to be adopted while estimating National Income by Expenditure method.
(ii) "Higher Gross Domestic Product (GDP) always means higher per capita availability of goods in the economy." Defend or refute the given statement as the index of welfare of the people of that country.
OR
(b) (i) Distinguish between Stock and flow variables, using suitable examples.
(ii) Explain the components of 'Profit' as per Income Method of estimating National Income (NNPfc).

(a) (i) Explain any two precautions to be adopted while estimating National Income by Value-added method.
(ii) "Higher Gross Domestic Product (GDP) always means higher per capita availability of goods in the economy." Defend or refute the given statement as the index of welfare of the people of that country.
OR
(b) (i) Distinguish between factor income and transfer income with suitable examples.
(ii) Explain the components of 'Profit' as per Income Method of estimating National Income (NNPfc).

Value Addition = ______ – Value of Intermediate Consumption.
(Choose the correct option(s) to complete the stated formula.)
(i) Domestic sales
(ii) Sales – change in stock
(iii) Value of output
(iv) (Number of units produced) × (Price per unit)
Options :
(A) (i) and (ii)
(B) (ii) and (iii)
(C) (ii), (iii) and (iv)
(D) (iii) and (iv)

State the meaning and significance of Gross Domestic Product (GDP) deflator.

(a) (i) On the basis of the data given below, estimate the value of National Income (NNPfc)

S. No.	Items	Amount (₹ in crore)
(1)	Private final consumption expenditure	2,000
(2)	Government final consumption expenditure	1,500
(3)	Gross domestic fixed capital formation	1,000
(4)	Addition to stock	400
(5)	Consumption of fixed capital	50
(6)	Net factor income from abroad	100
(7)	Net indirect Taxes	200
(8)	Net Exports	700

(ii) Differentiate between Real flow and Money flow.
OR
(b) (i) Gauhar, has recently completed her fashion designing studies and started a boutique. To produce dresses for sale, she purchased various materials, including a sewing machine, fabric, buttons and thread. These items are essential for producing the dresses.
Classify the material purchased by Gauhar as Final or Intermediate goods, giving valid reasons in support of the classifications.
(ii) "National Income is always equal to Domestic income in a two sector economy."
Defend or refute the given statement with valid reasons.

Define Nominal Gross Domestic Product. How is it different from Real Gross Domestic Product ?

(a) (i) On the basis of the data given below, estimate the value of Domestic Income (NDPfc)

S. No.	Items	Amount (₹ in crore)
(1)	Private final consumption expenditure	2,000
(2)	Government final consumption expenditure	1,500
(3)	Gross domestic fixed capital formation	1,000
(4)	Addition to stock	400
(5)	Consumption of fixed capital	50
(6)	Net factor income from abroad	100
(7)	Net indirect Taxes	200
(8)	Net Exports	700

(ii) Differentiate between Real flow and Money flow.
OR
(b) (i) Gauhar, has recently completed her fashion designing studies and started a boutique. To produce dresses for sale, she purchased various materials, including a sewing machine, fabric, buttons and thread. These items are essential for producing the dresses.
Classify the material purchased by Gauhar as Final or Intermediate goods, giving valid reasons in support of the classifications.
(ii) "National Income is always equal to Domestic income in a two sector economy."
Defend or refute the given statement with valid reasons.

Define Real Gross Domestic Product. How is it different from Nominal Gross Domestic Product ?