Worksheet on National Income
Theory Questions - 1
1. Answer in one sentences
1. Define circular flow of income.
2. Define National Income.
3. What should be added to ‘net domestic product’ to get ‘net national product’?
4. Define Real National Income.
5. What is a GNP deflator?
2. Answer in around 75 words ( 3 or 4 marks)
1. Distinguish between real flow and money flow. Give example.
2. Why do we study macro economics?
3. How will you derive Gross National Income at market prices from Domestic Income?
4. Distinguish between national income and domestic income.
5. Distinguish between consumption goods and capital goods.
6. Explain the concepts of stocks and flows.
7. Define Investments. What is the difference between Gross Investments and Net Investments?
8. Distinguish between intermediate products and final products. Give examples.
3. Answer in around 100 words (6 marks).
1. Explain the circular flow of income in a two sector economy.
2. What are the precaution to calculate national income by:
a) Value added method (b) Income method (c) Expenditure method
3. Write the steps to calculate national income by (a) Product method (b) Income method (c) Expenditure method
4. Are the following included in Gross Domestic Product? Give reasons.
1. Domestic services rendered by a hired servant.
2. Value of gift received by the government.
3. Scholarship given by the government by the student.
4. Sale of secondhand asset by the government.
5. Employee’s contribution to social security schemes.
6. Income taxes paid by the people.
7. Commission paid to a broker who is dealing in secondhand assets.
8. Purchase or sale of shares and bond.
Please click on below link to download CBSE Class 12 Economics National Income Worksheet Set B