HOLIDAY HOME WORK

CLASS XII ECONOMICS

1. WORKSHEET – NATIONAL INCOME AND RELATED AGGREGATES

Q1. Macro Economics means

(A) Study of individual behaviour

(B) Study of whole economy

(C) Study of production

(D) Study of an industry.

Q2. Which of following does not belong to Macro Economics?

(A) Household sector

(B) Firm sector

(C) The Consumer

(D) Government sector.

Q3. Which of following is not included in Macro Economics?

(A) Study of National Income

(B) Study of Employment

(C) Study of Power Industry

(D) Supply of Money.

Q4. Which of following is a consumption good ?

(A) Doctor's Services

(B) Television

(C) Use of Petrol

(D) All

Q5. Which of following is not a producer's good?

(A) Use of Machine tools

(B) Raw Material

(C) Advocate's Services

(D) Heavy Machinery.

Q6. Which of following is not an intermediate goods?

(A) Wheat

(B) Gold

(C) Services of Doctor for a household

(D) Sand and Bricks.

Q7. Which of following is not a final good?

(A) Machinery purchased by dealer

(B) Machinery purchased by a factory

(C) Machinery required for installation

(D) Machinery improved.

Q8.Which of following is not a flow?

(A) Capital

(B) Income

(C) Investment

(D) Depreciation

Q9.Which of following is a stock?

(A) Wealth

(B) Saving

(C) Exports

(D) Profits

Q10.Net investment does not include, which of following:

A) Working Capital
B)Depreciation of Machine

C) Machinery Bought

(D) Closing inventory.

Q11. Depreciation of fixed capital assets refers to:

(A)Normal wear and tear

(B) Foreseen obsolescence

( C) Normal wear and tear and foreseen obsolescence

(D) Unforeseen obsolescence

Q12. Unforeseen obsolescence of fixed assets during production is

(A)Consumption of fixed capital

(B) Capital loss

(C) Income loss

(D) None of Above.

Q13. Which of following is not a consumption of goods .....?

(A) Services of an advocate

(B) Use of Raw material

(C) Use of vegetables by household

(D) Use of Washing machine.

Q14. Which of following is not a depreciation of machines?

(A) Normal wear and tear

(B) Foreseen obsolescence

(C) Unexpected obsolescence

(D) All of these.

Q15. Unforeseen obsolescence happens due to:

(A) Expected wear and tear

(B) Economic Recession

(C) Change in Technology

(D) None of these.

Q16. Circular flow of income, flows between........…**

(A) Production, Income. Expenditure

(B) Consumption and Production

(C) Firm and Industry

(D) Different Components of Society

Q17. Which is main component of Capital market?

(A) Consumption and Investment

(B) Income and Saving

(C) Saving and Investment

(D) None of these.

Q18. What is main function of household sector?

(A) Aggregate consumption

(B) Production

(C) Both (A) & (B)

(D) None of these.

Q19. Which of following statement is not true?

(A) Capital sector is a component of Macro Economics

(B) Income is a circular flow

(C) Rest of world sector is found in closed economy

(D) All

Q20. Which of following is not included in Real Flow ?

(A) Goods

(B) Services

(C) Money

(D) All.

Q21. Which of following is a leakage of circular flow of income?

(A) Exports

(B) Imports

(C) Investment

(D) Consumption Expenditure.

Q22. Which of following is an injection in circular flow of income?

(A)Taxes by Govt.

(B) Payment of old debts

(C) Post office Savings

(D) Direct Foreign investment.

Q23. Which of following statements are wrong?

(A) Domestic saving disturbs circular flow of income

(B) Circular flow of income is found between Business Sector, Household Sector and Banking Sector

(C) Gross investment includes domestic and foreign investment

(D) Economic flow happens between firm sector and corporate sector.

Q24. National Income is the sum of factor incomes accruing to

(A) Nationals

(B) Economic Territory

(C) Residents

(D) Both Residents and Non-Residents

Q25. What is not included in Gross Domestic capital formation?

(A) Investment in machinery

(B) Investment in stocks

(C) Investment in shares

(D) Investment in valuables.

Q26. Which of following is not included in national income ?

(A) Factor income

(B) Transfer income

(C) Operating surplus

(D) Net factor income from abroad.

Q27. Which of following is a transfer earning?

(A) Earned income

(B) Factor income

(C) Unearned income

(D) Any of these.

Q28.Which of following is included in Gross National Income?

(A) Mixed income

(B) Consumption of capital goods

(C) Interest and Rent

(D) All of these.

Q29.Which of following is not included in Gross Value Added?

(A) Depreciation cost.

(B) Net indirect tax

(C) Transfer Earning

(D) None of these.

Q30. Which of following is not a national expenditure?

(A) Purchase of machinery

(B) X-M

(C) Help to accident victims

(D) None of these.

Q31. Which of following is not a domestic factor income?

(A) Net Exports

(B) Wages and Salaries

(C) Salary of Indians workers working in Russian Embassy

(D) None of these.

Q32. Net Value Added at factor cost is equal to?

(A) National Income

(B) Net Domestic Product

(C) Gross Domestic Product

(D) None of these.

Q33. How double counting can be avoided by using ?

(A) Final Goods Method

(B) Value Added Method

(C) Any of these

(D) None of these.

Q34. Expenditure on road construction is which type of expenditure?

(A) Household final expenditure

(B) X-M

(C) Transfer Payments

(D) Govt. Final Expenditure.

Q35. Which of following is not included in national income?

(A) Compensation of employees

(B) Income from sale

(C) Operating surplus

(D) Any of these

Q36. Which of following is true?

(A) Value added method should be adopted to avoid double counting

(B)NNPFC=GNPFC-Depreciation

(C) Transfer income is not included in national income

(D) All of these

Q37.Which of following is not a part of domestic income?

(A) Transfer earning

(B) Net factor income from abroad

(C) Sale of old goods

(D) All of these

Q38. Which of following is not a part of compensation of employees ?

(A) Salary and Wages

(B) Commission and Brokerages

(C) Bonus

(D) Travellers Allowance.

Q39.Which of following is not included in operating surplus?

(A) Profit

(B) Royality

(C ) Rent

(D) Profit from sale of old car.

 Q40. Which of following is not included in Net Value Added at Factor Cost?

(A) Factor's Income

(B) Sale of Services

(C) Net Indirect taxes

(D) All of these.

Q41.Calculate Net National Product at Market Price:

Items (₹ in crore)
1. Net Current transfers to abroad 10
2. Private final consumption expenditure 500
3. Current transfers from government 30
4. Net factor income to abroad 20
5. Net exports – 20
6. Net indirect tax 120
7. National debt interest 70
8. Net Domestic Capital formation 80
9. Income accruing to government 60
10. Government final consumption expenditure 100
Answer : 640 Cr

Q42. Calculate Net Domestic Product at Market Price.

Items (₹ in crore)
1. Private Final consumption expenditure 400
2. Opening stock 10
3. Consumption of fixed capital 25
4. Imports 15
5. Government final consumption expenditure 90
6. Net current transfers to rest of the world 5
7. Gross domestic fixed capital formation 80
8. Closing stock 20
9. Exports 10
10. Net factor income to abroad –5
Answer : 550 Cr

Q43. Calculate Gross Fixed Capital Formation from the following data:-

Items (₹ in crore)
1. Private final consumption expenditure 1000
2. Government final consumption expenditure 500
3. Net Exports – 50
4. Net Factor income from abroad 20
5. Gross Domestic product at market price 2500
6. Opening Stock 300
7. Closing Stock 200
Answer : 1150 Cr

Q44. Calculate ‘Net Domestic Product at Factor Cost’ from the following:-

Items (₹ in crore)
1. Net Current transfers to abroad 5
2. Government final consumption expenditure 100
3. Net indirect tax 80
4. Private final consumption expenditure 300
5. Consumption of fixed capital 20
6. Gross domestic fixed capital formation 50
7. Net imports – 10
8. Closing stock 25
9. Opening stock 25
10. Net factor income to abroad 10
Answer : 360 Cr

Q45. Calculate National Income from the following:

Items (₹ in crore)
1. Net current transfers to abroad – 15
2. Private final consumption expenditure 600
3. Subsidies 20
4. Government final consumption expenditure 100
5. Indirect tax 120
6. Net imports 20
7. Consumption of fixed capital 35
8. Net change in stocks – 10
9. Net factor income to abroad 5
10. Net domestic capital formation 110
Answer : 685 Cr

Q46. Calculate a) Operating Surplus, and b) Domestic Income;

Items ₹ in Crore
i) Compensation of Employees 2,000
ii) Rent and interest 800
iii) Indirect Taxes 120
iv) Corporation tax 460
v) Consumption of fixed capital 100
vi) Subsidies 20
vii) Dividend 940
viii) Undistributed Profits 300
ix) Net Factor Income to abroad 150
c) Mixed Income 200
Answer: OS = 2500, Domestic income = 4700 Cr
 Q47. Calculate National Income:

Items (₹ in crore)
1. Profit 1,000
2. Mixed Income of self employed 15,000
3. Dividends 200
4. Interest 400
5. Compensation of employees 7,000
6. Net factor income to abroad 100
7. consumption of fixed capital 400
8. Net exports – 200
9. Net Indirect taxes 800
10. Net Current transfers to rest of the world 40
11. Rent 500
Answer : 23800

Q48. Find National Income:-

Items (₹ in crore)
1. Wages and Salaries 1000
2. Net Current transfers to abroad 20
3. Net Factor income paid to abroad 10
4. Profit 400
5. National debt interest 120
6. Social security contributions by employers 100
7. Current transfers from government 60
8. National income accruing to government 150
9. Rent 200
10. Interest 300
11. Royalty 50
Answer : 2040 Cr

Q49. Calculate ‘Gross National Product at Market Price.

Items (₹ in crore)
1. Rent 100
2. Net Current transfers to rest of the world 30
3. Social Security contributions by employers 47
4. Mixed Income 600
5. Gross Domestic Capital Formation 140
6. Royalty 20
7. Interest 110
8. Compensation of Employees 500
9. Net Domestic Capital Formation 120
10. Net Factor income from abroad – 10
11. Net Indirect tax 150
12. profit 200
 Answer : 1690 Cr

Q50. Calculate Operating Surplus from the following data:-

Items (₹ in crore)
1. Compensation of employees 300
2. Indirect taxes 200
3. Consumption of fixed Capital 100
4. Subsidies 50
5. Gross Domestic Product at market price 600
Answer : 50 Cr

2. Complete the CBSE Economics Project Work with respect to the following
aspects:
a. Selection of the topic
b. Setting up the specific and general objectives of the project work.
c. Deciding the appropriate methodology on the basis of the selected objectives.
d. Research on the topic selected