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For a hypothetical… (Class 12 Economics 2026, Q13A)

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EconomicsCBSE Class 12 · Board exam 2026, set 58/1/1 · 4 marks · Long answer

CBSE Class 12 Economics 2026: question 13(A)

Set in the CBSE Class 12 board exam of 2026, paper 58/1/1, section A, question 13(A), for 4 marks. Try it first; the hints and our step-by-step solution are below.

Q13(A) · 4 marks · Long answerNational Income Accounting

For a hypothetical economy, assuming there are only two firms (X and Y) with equal values of Gross Value Added (GVA).
On the basis of the following data, estimate the value of Domestic Sales of both the firms (X and Y) :

S. No.ItemsAmount (in ₹ crore)
(i)Value of Output of firm Y700
(ii)Purchases by firm X from firm Y200
(iii)Exports by firm X100
(iv)Purchases by firm Y from firm X150
(v)Additions to Stock of firm X50

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 58/1/1.

Hints

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

Hint 1

Find GVA of Y first; X's GVA is the same.

Hint 2

Output = Domestic sales + Exports + Change in stock.

Hint 3

Each firm's purchases from the other are its intermediate consumption.

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. Firm Y's purchases from X (₹ 150 crore) are its intermediate consumption. GVA of Y = Value of output − Intermediate consumption = 700 − 150 = ₹ 550 crore.

    1 mark

  2. No exports or change in stock are given for Y, so its output is all sold at home: Domestic sales of Y = GVA + intermediate consumption = 550 + 150 = ₹ 700 crore.

    1 mark

  3. GVA of X = GVA of Y = ₹ 550 crore. X buys ₹ 200 crore from Y, so Value of output of X = 550 + 200 = ₹ 750 crore.

    1 mark

  4. Value of output = Domestic sales + Exports + Change in stock, so Domestic sales of X = 750 − 100 − 50 = ₹ 600 crore.

    1 mark

Answer: Domestic sales: firm X ₹ 600 crore, firm Y ₹ 700 crore.

Where the marks are

  • GVA of Y ₹ 550 crore (1)
  • Domestic sales of Y ₹ 700 crore (1)
  • GVA of X = ₹ 550 crore, output ₹ 750 crore (1)
  • Domestic sales of X ₹ 600 crore (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 paper2026 board paper, set 58/1/1: 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.