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State the meanings… (Class 12 Economics SQP 2023-24, Q12B)

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

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

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

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

State the meanings of the following:
(i) Externalities (ii) Operating Surplus (iii) Consumption Goods

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

Think of a factory polluting a river.

Hint 2

Which factor incomes are not wages?

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. (i) Externalities are the benefits (positive externalities) or harms (negative externalities) that one person or firm causes to others without being paid or penalised for them.

    1 mark

  2. (ii) Operating surplus is the sum of rent, royalty, interest and profit: the income from property and entrepreneurship (non-wage income).

    1 mark

  3. (iii) Consumption goods are goods (and services) bought by final consumers to satisfy their wants directly.

    1 mark

Answer: (i) Unpaid-for benefits or harms to others; (ii) rent + royalty + interest + profit; (iii) goods that directly satisfy consumers' wants.

Where the marks are

  • Each meaning (1 + 1 + 1)

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.