Skip to content

On the basis of the… (Class 12 Economics SQP 2023-24, Q12A)

questionbuddy.in/q/cbse-12-economics-2023-24-sqp-q12a-basis-data-estimate-value-domestic

EconomicsCBSE Class 12 · Sample paper, session 2023-24 · 3 marks · Short answer

CBSE Class 12 Economics sample paper 2023-24: question 12(A)

From the official CBSE sample question paper for 2023-24, section A, question 12(A), for 3 marks. Try it first; the hints and our step-by-step solution are below.

Q12(A) · 3 marks · Short answerNational Income Accounting

On the basis of the given data, estimate the value of Domestic Income:

S. No.ItemsAmount (₹ in crore)
i.Household Consumption Expenditure600
ii.Gross Fixed Capital Formation200
iii.Change in stock40
iv.Government Final Consumption Expenditure200
v.Net Exports(-)40
vi.Net Indirect Taxes120
vii.Net Factor Income From Abroad20
viii.Consumption of Fixed Capital40

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2023-24.

Hints

Open one hint at a time and try again before the next.

Hint 1

Start from GDP at market price by the expenditure method.

Hint 2

Subtract depreciation and net indirect taxes.

Hint 3

Domestic income has no NFIA.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Domestic income (NDPfc) = Household consumption + Government final consumption + Gross fixed capital formation + Change in stock + Net exports − Consumption of fixed capital − Net indirect taxes = (i) + (iv) + (ii) + (iii) + (v) − (viii) − (vi)

    1½ marks

  2. = 600 + 200 + 200 + 40 + (−40) − 40 − 120

    1 mark

  3. = ₹ 840 crore. (NFIA is not used: domestic income excludes it.)

    ½ mark

Answer: Domestic income (NDPfc) = ₹ 840 crore.

Where the marks are

  • Correct formula (1½)
  • Substitution (1)
  • Answer (½)

Revise the chapter

Practise this chapterBoard-style questions from National Income Accounting, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2023-24: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.