DELHI PUBLIC SCHOOL, NACHARAM

CLASS-XII
SUBJECT: ECONOMICS

WORKSHEET: 5

TOPIC: MEASUREMENT OF NATIONAL INCOME

Q. 1 In an economy following transactions took place:

(i) Firm A sold to firm B goods of Rs. 80 Crore; to Firm C Rs. 50 Crore; to
household Rs. 30 crore and goods of value Rs. 10 crore remains unsold.
(ii) Firm B sold to Firm C goods of Rs. 70 Crore; to Firm D Rs. 40 Crore;
goods of value Rs. 30 Crore were exported and goods of value Rs. 5 Crore
was sold to Government.
Calculate:
(a) Value of output of Firm A and Firm B.
(b) Value added by Firm B.
Q. 2 State whether following statement is true/false -
“Expected obsolescence is included in depreciation”

Q. 3 Which of the following items will be included/not included while estimating Gross
Domestic Product? Give valid reasons in support of your answer.
1) Wages received by an Indian working in the British Embassy in India
2) Financial aids received from abroad after ‘Fani Cyclone’.
3) Wages received by Indian Embassy in Britain
4) Profits earned by a branch of foreign bank in India.
5) Salaries of Indian employees working in embassy of Japan in India.
6) Salary of residents of Japan working in Indian embassy in Japan.
7) Profits earned by branches of country's bank in other countries.
8) Fees to a mechanic paid by a firm.

Q. 4 From the following data, calculate the value added by firm A and firm B:
Closing Stock of Firm A 20
Closing Stock of Firm B 15
Opening Stock of Firm A 5
Opening Stock of Firm B 10
Sales by Firm A 300
Purchase by Firm A from Firm B 100
Purchase by Firm B from Firm A 80
Domestic sales by Firm B 250
Import of raw material by Form A 50
Exports by Firm B 30
Q. 5 Classify the following goods into intermediate goods and final goods with reason:
 1) Milk purchased by a household
2) Purchase of rice by a grocery shop
3) Purchase of an air conditioner for use in a shop
4) Cloth used for making a sofa-set by the carpenter
5) Milk purchased by a tea stall
6) Bus purchased by a school
7) Juice purchased by a student from the school canteen.
Q. 6 Calculate Net Value Added at Factor Cost of a Firm using the following information:
Particulars ₹ (in crores)
Durable use producer goods with a life span of 10 years 10
Single use of producer goods 5
Sales 20
Unsold output produced during the year 2
Net indirect taxes 1
Q. 7 From the given information calculate the (a) Gross National Product at Market Price
(b) National Income
Particulars ₹ (in crores)
Value of output in primary sector 1,000
Net Factor income from abroad -(20)
Value of Output in tertiary sector 700
Intermediate consumption in secondary sector 400
Value of output in secondary sector 900
Intermediate consumption in primary sector 500
Intermediate consumption in tertiary sector 300
Net Indirect Taxes 300
Consumption of Fixed Capital 100
Q. 8 Calculate Sales form the following:
Particulars ₹ (in crores)
Subsidies 200
Opening stock 100
Closing Stock 600
Intermediate Consumption 3,000
Consumption of Fixed Capital 700
Profit 750
Net Value Added at Factor Cost 2,000
Exports 100