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10th Samacheer Kalvi Social (Economics) Two mark questions with answers Lesson 1 National Income Write short notes on the following: 1. Define National Income. National Income is a measure of the total value of goods and services produced by an economy over a period of time, normally a year. 2. How do you arrive at NNP? Net National Product is arrived by deducting the value of depreciation from Gross National Products. NNP = GNP- Depreciation. 3. Write a note on income method. Income method is one of the methods to calculate the national income. In this method, the income and payments received by all the people in the country are calculated. 4. What is Percapita Income? Percapita Income is obtained by dividing the national Income by the population of a country. Percapita Income = National Income Population 5. Write any two needs for the study of National Income. To measure the size of the economy and level of countrys economic performance. To measure the production of goods and services.

6. What is tertiary sector? Tertiary sector includes trade, hotel, industry, transport, storage, communication, finance, insurance, real estate and social service. 7. What is Laissez-faire? Laissez-faire means non-intervention by the government. 8. Write a note on the productive functions of modern welfare State. Economic development can be achieved only if there is peace in the state. So the primary function of the government is to maintain law and order. It should also protect the people from external aggression and internal disorder.

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9. Define Gross Domestic Product. Gross Domestic Product is the total value of output (goods and services) produced by the factors of production within the geographical boundaries of the country. 10. What is Net Domestic Product? Net Domestic Product is obtained from the Gross Domestic Product by deducting the quantum of tear and wear expenses (depreciation). NDP = GDP (-) Depreciation

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