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“Under the Expenditu… (Class 12 Economics SQP 2025-26, Q13B)

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EconomicsCBSE Class 12 · Sample paper, session 2025-26 · 4 marks · Short answer

CBSE Class 12 Economics sample paper 2025-26: question 13(B)

From the official CBSE sample question paper for 2025-26, section A, question 13(B), for 4 marks. Try it first; the hints and our step-by-step solution are below.

Q13(B) · 4 marks · Short answerNational Income Accounting

“Under the Expenditure Method, the value of Gross Domestic Product (GDP) can be estimated by adding the final expenditure incurred by all the sectors of an economy.”
In the light of the given statement, explain the expenditure incurred by any two sectors.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2025-26.

Hints

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

Hint 1

Who are the four spenders in an open economy?

Hint 2

GDP at MP = PFCE + GFCE + GDCF + (X − M).

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. Household sector – Private Final Consumption Expenditure (PFCE):

    1 mark

  2. the expenditure by households and non-profit institutions serving households on final consumption of goods and services, such as food and clothing.

    1 mark

  3. Rest of the world – Net Exports (X − M):

    1 mark

  4. the excess of the value of exports of goods and services over the value of imports during the accounting year. (Also accepted: government final consumption expenditure, or gross domestic capital formation by firms.)

    1 mark

Answer: Any two: PFCE (households on final consumption), net exports (exports − imports), GFCE (government) or GDCF (investment by producers).

Where the marks are

  • Each sector's expenditure named and explained (2 + 2)

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 2025-26: 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.