Class 12 Economics Test

1. Define the concept of Value-Added method?

2. Distinguish between intermediate consumption and final consumption?
3. Whether the following items will be included in national income? Give reasons for
your answer.
i. Bonus to employees
ii. Purchase of books by a student
iii. Bus fare paid by a passenger
iv. Wages received by an Indian working in British embassy.
v. Free meals to beggars
vi. Gifts to trust from China
vii. Expenditure incurred by normal residents on foreign travel.
viii. Financial help to flood victims
4. Calculate GDPMP and NDPMP with the help of expenditure method from the data give
below:
Items (Rs. in crore)
(i) Personal disposable income 8,600
(ii) Personal savings 1,500
(iii) Fixed capital formation 3
(iv)  Net exports (−)300
(v) Net factor income from abroad (−)500
(vi) Net indirect taxes 600
(vii) Government final consumption expenditure 2,200
(viii) Change in stock 800
450
(ix) Consumption of fixed capital

5. All machine goods are not capital goods. Justify.

6. What are capital goods and consumer goods? Discuss the types of consumer goods.
7. How did the export surplus lead to an economic drain of wealth during colonial rule?
8. What do you mean by low productivity in agriculture? 
9. ‘Composition of foreign trade of any country tells us about the nature of commodities that are
exported and imported.’ What can you state about the composition of foreign trade at the time
of Independence?