SAI INTERNATIONAL SCHOOL

Class XII
Economics Worksheet 2
Ch: Basic Concepts of Macroeconomics

Q.N Question Marks

1 Which of the following is a part of the domestic territory of India? 1
A. UN office in Delhi
B. Branch of SBI in London
C. Indian consulate in China
D. TATA rented its building to Google in America

2 Identify who is a normal resident of India? 1

A. An American visiting India for a business meeting
B. A Japanese tourist who visits India for visiting places
C. An NRI living in France
D. Indian Officials working in Indian Embassy in USA

3 Which is not a factor Income? 1

A. Taxes paid to the Government
B. Rent received by an owner of factory.
C. Dearness allowance added to basic salary of an employee
D. None of the above

4 Fill in the blanks: 1

----------- is added to National Income accounting. (Transfer Income /
Factor Income)

5 Choose the incorrect pair 1

Column I Column II
a) Chinese Embassy in India i) Not a part of domestic territory
of India
b) Factor Income ii) Receipt concept
c) Purchase of rice by Dev iii) Final Good
d) Transfer income iv) Not included in GDP
6 Two statements are given in the question below as Assertion (A) and 1
Reasoning (R). Read the statements and choose the appropriate option.
Assertion (A): Depreciation is loss in the value of fixed assets due to
normal wear and tear and expected obsolescence.
Reasoning (R): During the production process, productive capacity of
fixed assets keeps declining due to change in technology, demand etc
A. Both Assertion (A) and Reason (R)are true and Reason (R) is the
correct explanation of Assertion (A).

Session 2023-24
 B. Both Assertion (A) and Reason (R) are true and Reason (R)is not
the correct explanation of Assertion (A)
C. Assertion (A) is true but Reason (R) is false.
D. Assertion (A) is false but Reason (R)is true

7 Read the following statements carefully and choose the correct 1

alternatives given below
Statement-1: National Income accounting only includes the value of
Final Goods
Statement-2: If the value of the intermediate good is included, it leads
to the problem of double counting
Alternatives:
A. Both the statements are true.
B. Both the statements are false.
C. Statement 1 is true and Statement 2 is false
D. Statement 1 is false and Statement 2 is true

8 Define Retained earnings. 1

9 Which of the following options is correct regarding NFIA? 1

A. Positive NFIA When Income earned from abroad < Income paid
to abroad
B. Negative NFIA when Income earned from abroad < Income paid
to abroad
C. Zero NFIA when Income earned from abroad is not equal to
Income paid to abroad
D. None of these

10 Gross investment is always greater than net investment. Defend or 1

refute with reasons

11 Differentiate between Final Goods and Intermediate Goods 3

12 Differentiate between Consumption of fixed capital and Capital Loss 3

13 Justify the following statements with reasons: 4

a) Subsidies to producers should be treated as Transfer payments
b) Intermediate goods have derived demand whereas final goods
have direct demand

Session 2023-24