CBSE Class 12 Economics National Income And Related Aggregates Worksheet Set E

Read and download free pdf of CBSE Class 12 Economics National Income And Related Aggregates Worksheet Set E. Students and teachers of Class 12 Economics can get free printable Worksheets for Class 12 Economics Part B Macroeconomics Chapter 4 Determination of Income and Employment in PDF format prepared as per the latest syllabus and examination pattern in your schools. Class 12 students should practice questions and answers given here for Economics in Class 12 which will help them to improve your knowledge of all important chapters and its topics. Students should also download free pdf of Class 12 Economics Worksheets prepared by school teachers as per the latest NCERT, CBSE, KVS books and syllabus issued this academic year and solve important problems with solutions on daily basis to get more score in school exams and tests

Worksheet for Class 12 Economics Part B Macroeconomics Chapter 4 Determination of Income and Employment

Class 12 Economics students should refer to the following printable worksheet in Pdf for Part B Macroeconomics Chapter 4 Determination of Income and Employment in Class 12. This test paper with questions and answers for Class 12 will be very useful for exams and help you to score good marks

Class 12 Economics Worksheet for Part B Macroeconomics Chapter 4 Determination of Income and Employment

Short Answer Type Questions

Question. In an economy, an increase in Investment by ₹ 100 crore led to ‘increase’ in National Income by ₹ 1,000 crore. Find Marginal Propensity to Consume.
Answer: ΔY = ΔI 1/1-MPC
1000 = 100 1/1-MPC
OR
1,000 – 1,000 MPC = 100
MPC = 900/1000 = 0.9

Question. In an economy 20 percent of increased income is saved. How much will be the increase in income if investment increases by 10,000 ?
Answer: MPS = 20/100
K = 1/MPS = 1/1/5 = 5
∆Y = K. ∆I
= 5 × 10,000 = 50,000

Question. Explain now the level of effective demand is attained in an economy if, Aggregate Demand is more than Aggregate supply.
Answer: Effective demand refers to that level of output where Aggregate demand is equal to the Aggregate supply.

Question. Calculate Investment Expenditure from the following data about an economy which is in equilibrium : National Income = 1,000 Marginal Propensity to Save (MPS) = 0.25 Autonomous Consumption Expenditure = 200
Answer: Given, Y = C + I
where C = C + b(Y)
∴ Y = C + b(Y) + I 1
∴ 1,000 = 200 + (1 – 0.25) 1,000 + I
or 1,000 = 200 + 0.75 × 1,000 + I 1
or 1,000 = 200 + 750 + I
or 1,000 = 950 + I
or I = 1,000 – 950 I = ₹ 50

Question. In an economy, investment increases from 300 to 500. As a result of this equilibrium level of Income increases by 2,000. Calculate the marginal propensity to consume.
Answer: ∆I = 500 – 300 = 200
K = ∆Y/∆I = 2000/200 = 10
K = 1/MPS
10 = 1/MPS
So MPS =1/10
hence MPC = 1 – MPS = 9/10 = 0.9

Question. Calculate Marginal Propensity to Consume from the following : (i) Equilibrium Income = ₹ 350 (ii) Consumption Expenditure at Zero Income = ₹ 20 (iii) Investment = ₹ 50
Answer: Y = C + I We know, C = C + b(Y)
∴ Y = C + b(Y) + I
or 350 = 20 + b(350) + 50
or 350 = 70 + 350b
or 350b = 280
b = 280/350 = 4/5 = 0.8 
or b = 0.8

Question. In an economy, a 20 percent increase in investment results in a 100 percent increase in income.
Calculate marginal propensity to consume.
Answer: K = (ΔY/ΔI)
K = 100/20 = 5
We know, K = 1/1 -MPC
or 5 = 1/1 -MPC
or 5 – 5 MPC = 1
or 5 – 1 = 5 MPC
or MPC = 4/5 = 0.8

Question. Calculate equilibrium national income from the following : (i) Consumption Expenditure at Zero Income = ₹ 60 (ii) Marginal Propensity to Consume = 0.9 (iii) Investment = ₹ 100 
Answer:
Y = C + I
We know, C = C + b(Y)
∴ Y = C + b(Y) + I
or Y = 60 + 0.9(Y) + 100
Y = 0.9Y + 160
or Y – 0.9Y = 160
or 0.1Y = 160
or Y = 160/0.1 = 1,600
∴ Y = ₹ 1,600

Question. Which of the following cannot have a negative value ? Give reasons. (i) Average propensity to save. (ii) Marginal propensity to save.
Answer: (i) APS can have a negative value because at very low level of income there is dissaving. 
(ii) MPS cannot have a negative value as it is the ratio of ΔS and ΔY and ΔS and ΔY can at the most be zero.

Question. In an economy, income increases from ₹ 5,000 crore to ₹ 6,000 crore as a result of 20 percent increase in investment. Calculate the value of investment multiplier. 
Answer: ΔI = 20%
ΔY = 1,000 or 20%
K = ΔY/ΔI
K = 20%/20% = 1

Question. “Economists are generally concerned about the rising Marginal Propensity to Save (MPS) in an economy”. Explain why ? 
Answer: Since the sum of MPC and MPS is 1. Any increase in Marginal Propensity to Save (MPS) would directly lead to decrease in Marginal Propensity to Consume (MPC). This means that it may lead to lesser proportion of the additional income going for consumption which is a vital factor of Aggregate Demand Expenditure. This may further lead to fall in equilibrium level of income in the economy. If Aggregate Demand exceeds Aggregate Supply, it means buyers are planning to buy more goods and services than producers are planning to produce. Thus, the inventories in hand with the producers will start falling. As a result, producers will plan to raise the production. This will increase the level of income upto the level Aggregate Demand is equal to Aggregate Supply.

Question. If in an economy’s saving function is given by S = (–) 50 + 0.2 Y and Y = ₹ 2,000 crore; consumption expenditure for the economy would be ₹ 1,650 crore and the autonomous investment is ₹ 50 crore and the marginal propensity to consume is 0.8. True or False ? Justify your answer with proper calculations. 
Answer: Yes, all the given values are correct. S = – 50 + 0.2Y
S = – 50 + 0.2 (2,000)
= 50 + 400
= ` 350 crore
At equilibrium level of income: Y = C + S
2,000 = C + 350
C = 2,000 – 350
= 1,650 (in ` crore)
MPC + MPS = 1
MPC + 0.2 = 1
MPC = 1 – 0.2 = 0.8

Question. If marginal propensity to consume is 0.5, calculate the value of investment multiplier.
Answer: Multiplier (k) = 1/1-MPC
= 1/1 – 0.5
= 2

Question. Find the Investment from the following : National Income = ₹ 600 Autonomous Consumption = ₹ 150 Marginal Propensity to Consume = 0.70
Answer: Y = ₹ 600 C = ₹ 150 MPC or b = 0.70
We know that, Y = C + S
or Y – C = S
or S = Y – C or S = 600 – [C + (b)Y] 
or S = 600 – [150 + 0.7 × 600] 1
or S = 600 – [150 + 420] S = 600 – 570
or S = ₹ 30 As, I = S = ₹ 30
Hence, Investment = ₹ 30

Question. Calculate Multiplier when MPC is 4/5 and 1/2 . From the calculations establish the relation between the size of the Multiplier and the size of MPC ?
Answer: Multiplier = 1/1-MPC
When MPC = 4/5
K = 1/1-0.8 = 1/0.2 = 5
When MPC = 1/2
K = 1/1-0.5 = 1/0.5 = 2
Observing the same we may conclude that there exist positive or direct relation between MPC and Investment Multiplier. Investment Multiplier coefficient measures the change in final income with respect to given change in the initial investment in the economy. It carries direct relation with rate of growth in an economy, i.e. higher the MPC more chance of growth exists in an economy. But, it is a two sided sword hence if investment falls in an economy the income may also fall.

Question. If in an economy, C = 500 + 0.9 Y and I = ₹ 1,000 crores. (where C = Consumption expenditure, Y = National Income, I = Investment) Calculate the following : (i) Equilibrium level of income (ii) Value of investment multiplier
Answer: (i) Equilibrium level of income will be determined when
Y = C + I
Y = 500 + 0.9 Y + 1000
Y– 0.9Y = 1500
Y = 1500/0.10 = ₹ 15,000 crore
(ii) Value of investment Multiplier = 1/1-MPC

Question. Find Consumption Expenditure from the following :
National Income = ₹ 5,000
Autonomous Consumption = ₹ 1,000
Marginal Propensity to Consume = 0.8A
Answer: Y = C + I and we know, C = C + b(Y)
∴ Y = C + b(Y) + I
or C = 1,000 + 0.8(5,000) 1
or C = 1,000 + 4,000
or C = ₹ 5,000 

Question. Marginal Propensity to Consume is zero. Calculate the change in income if investment falls by ₹ 1,000 crores.
Answer: MPC = 0
K = 1/1-MPC
= 1/1-10 = 1/1
or K = 1
and K = ΔY/ΔI
1 = ΔY/1000 or ΔY = 1,000
Therefore, change in income is ₹ 1,000 crore.

Question. From the following data calculate investment expenditure : (i) Marginal propensity to save = 0.2 (ii) Equilibrium level of income = 22500
(iii) Autonomous consumption = 500
Answer: Y = C + (1 – MPS)Y + I 1½
22,500 = 500 + (1 – 0.2) 22,500 + I 
I = 22,500 – 500 – 18,000 = 4000 
(Calculation based on I = Y – C is also correct) (No marks if only the final answer is given)

Question. What is meant by aggregate demand? State its components.
Answer: Aggregate Demand refers to the value of final goods and services which all sectors of an economy are planning to buy during a year.
Components :
(i) Private consumption expenditure
(ii) Government consumption expenditure
(iii) Investment expenditure
(iv) Net exports.

Question. Calculate consumption expenditure in the economy whose equilibrium level of income is 20,000, autonomous consumption is 500 and marginal propensity to save is 0.5.
Answer: C = C + (1 – MPS)Y 
= 500 + (1 – 0.5) 20,000 1
C = 500 + 10,000 = 10,500

Question. Find the value of multipliers given (i) Marginal Propensity to Consume = 1 and (ii) Marginal Propensity to Save = 1.
Answer: (i) Here, MPC = 1
Hence, Multiplier (K) = 1/1-MPC = 1/1-1 = ∞
So, Multiplier = ∞ (infinity) (ii) Here, MPS = 1
Now, K = 1/MPC = 1/1
Hence, Multiplier (K) = 1

Question. From the following data calculate the equili- brium level of national income :
(i) autonomous consumption = 500
(ii) marginal propensity to save = 0.2 (iii) Investment = 2000
Answer: Y = C + (1 – MPS)Y + I 1½
Y = 500 + (1 – 0.2)Y + 2,000 1
0.2Y = 2,500, Y = 12,500

Question. Estimate the value of ex-ante AD, when autonomous investment and consumption expenditure (A) is 50 crores, and MPS is 0.2 and level of income is 300 crores.
Answer: MPC = 1 – MPS
MPC = 1 – 0.2
MPC = 0.8 AD = C+I AD = A +bY
AD = 50 + 0.8 (300)
AD = 290 Crores

Question. Find National Income from the following : Autonomous Consumption = ₹ 100 Marginal Propensity to Consume = 0.60 Investment = ₹ 200 
Answer: Here, C = ₹ 100, MPC
or b = 0.60, I = ₹ 200 b = 0.6 I = S = ₹ 200 Now, we know that Y = C + S
or Y – S = C
or Y – S = C + (b)y
[∴ C = C + bY]
or Y – 200 = 100 + 0.6Y
or Y – 0.6Y = 100 + 200
or 1.4Y = 300
Y = 300/0.4 = ₹ 750
Hence, National Income (Y) = ₹ 750 

Question. As a result of increase in investment by ₹ 60 crore. National Income rises by ₹ 240 crore. Calculate Marginal Propensity to Consume.
Answer: Here, ΔI = ₹ 60 crore, ΔY = ₹ 240 crore Hence, Multiplier (K) = ΔY/ΔI = 240/60 = 4
Now, K = 1/1-MPC
or 4 = 1/1-MPC
or 4 – 4 MPC = 1
or 4 MPC = 4 – 1
or MPC = 3/4
= 0.75

Question. Estimate the value of Aggregate demand in an economy if :
(i) Autonomous Investment (i) = ₹ 100 crore (ii) Marginal Propensity to save = 0.2 (iii) Level of Income (y) = ₹ 4000 crore (iv) Autonomous Consumption Expenditure (c) = ₹ 50 crore 
Answer: The Aggregate Demand(AD) function is given as : AD = C + I
AD=[c+b(Y)] + I
c = 50
b or MPC = 1 – MPS = 1 – 0.2 = 0.8
Substituting the values of c and b in AD function,
we get :
AD = [50 + 0.8 (4000)]+ 100 = ₹ 3,350 crores
Aggregate Demand is ₹ 3,350 crores

Question. If in an economy :
(i) Consumption function is given by C = 100 + 0.75
Y, and (ii) Autonomous investment is ` 150 crores. Estimate (a) Equilibrium level of income and (b) Consumption and Savings at the equilibrium level of income.
Answer: C = 100 + 0.75 Y
I = 150 (i) At equilibrium level of income :
Y = C + I
Y = 100 + 0.75
Y + 150
Y = 0.75
Y + 250
Y = 250/0.25 = 1,000 (in ₹ crores)
(ii) C = 100 + 0.75Y
= 100 + 0.75(1,000)
= 100 + 750 = 850 (in ₹ crores)
Y = C + S or S
= Y – C = 1,000 – 850
= 150

Question. Distinguish between voluntary unemployment and involuntary unemployment. What is the significance of this distinction ?
Answer: Voluntary Unemployment : It is the part of the working force which is not willing to engage itself in gainful occupation.
Involuntary Unemployment : It is the part of the labour force which is willing and able to work at the prevailing wage rate but is out of work.
Significance—It helps to estimate Aggregate Demand.

Question. In an economy C = 200 + 0.5y is the consumption function where C is the consumption expenditure and Y is the national income. Investment expenditure is 400 crores. Is the economy in equilibrium at an income level. ₹ 1500 crores ? Justify your answer.
Answer: No Economy is not in a state of equilibrium at ₹ 1500 crores Given Consumption function, C = 200 + 0.5Y Investment expenditure (I) = ₹ 400 croreAT the equilibrium levelY = C + I Substituting the values from the question :
Y = (200 + 0.5Y) + 400
Y – 0.5Y = 600 Y= 600/0.5
= 1200 The equilibrium level of income is ₹ 1200 crores. The given income ₹ 1500 crore is greater than equilibrium level of income. Therefore, the economy is not in equilibrium.

Question. Calculate Value Added at factor cost from the following.

ITEMS Rs. CRORES
a. Purchase of raw materials 30
b. Depreciation 12
c. Sales 200
d. Excise tax 20
e. Opening stock 15
f. Intermediate consumption 48
g. Closing stock 10
Answer: Sales + Δ in stock = value of output
200 + (cl. St – op. st)
200 + (10 -15)
= 200 -5=195
Value of output – intermediate consumption
= value added at MP
195-48 = 147
V.A at FC = V.A at MP – Net indirect tax
147 – 20
127 crores
 
Question. Calculate (a) Net National Product at MP, and (b) Gross National Disposable Income
                     ITEMS                                   Rs. crores
a. Private final Consumption expenditure         200
b. Net indirect taxes                                        20
c. Change in stocks                                     (--)15
d. Net current transfers from abroad            (--)10
e. Govt. final consumption expenditure              50
f. Consumption of fixed capital                          15
g. Net domestic capital formation                      30
h. Net factor income from abroad                        5
i. Net imports                                                   10
Answer:(a) + (e) + (g) + (-i) = NDP MP
200 + 50+ 30 -10
280 -10 = 270 crores
NNP MP = NDP MP + NFIFA
270 + 5 = 275
NNP MP + 275 crores
GNDI = NNP PC + NFIFA + Net indirect taxes + Net current transfers from abroad +
Depreciation (comp of fixed capital)
NNP MP – net in tax = 275 – 20 =255 crores
GNDI = 255 + 20 + 5 + (-10) + 15
= 295 – 10 = 285 crores
GNDI = 285 crores
 
Question. Calculate Gross Domestic Product at Market Price by
(a) Production Method and (b) Income Method
                    ITEMS                     Rs. crores
a. Intermediate consumption by
i) Primary sector                             500
ii) Secondary sector                        400
iii) Tertiary sector                           400
b. Value of output by
i) Primary sector                            1000
ii) Secondary sector                         900
iii) Tertiary sector                            700
c. Rent                                             10
d. Compensation of employees         400
e. Mixed income                              550
f. Operating surplus                         300
h. Net factor income from abroad   (--)20
i. Interest                                           5
j. Consumption of fixed capital           40
k. Net indirect taxes                          10
Answer: GDP MP by production method
(b) (i) + (ii) + (iii) – a (i) + (ii) + ( iii) = value added
(1000+ 900 + 700) – (500 -400-400)
2600 – 1300 = 1300 crores Value added at MP (GDP MP)
Income method
Compensation of employees + operating surplus + mixed income = NDP FC
= 400 + 300 + 550 = 1250 crores
GDP MP = NDP FC + conspn of fixed capital + net In. tax
= 1250+ 40 + 10
GDP MP =1300
 
Question. Calculate Net National Disposable Income from the following data.
                     ITEMS                                Rs. crores
a. Gross domestic product at MP                  1000
b. Net factor income from abroad               (-) 20
c. Net indirect taxes                                     120
d. Consumption of fixed capital                     100
e. Net current transfers from abroad               50
Answer: NNDI = GDP MP – consumption of fixed capital + Net FIFA + Net current transfer
from abroad
= 1000- 100 + 50 + (-20)
= 880 + 50 = 930 crores
 
Question. Calculate Gross National Disposable Income from the following.
                   ITEMS                                        Rs. crores
a) National Income                                            2000
b) Net current transfers from rest of the world      200
c) Consumption of fixed capital                            100
d) Net factor income from abroad                     (-) 50
e) Net indirect taxes                                             25
Answer: GNDI= (a) + (b) +(c) + (e)
= 2000 + 200 + 100 + 250
GNDI = 2550 crores
 
Question. ESTIMATE NATIONAL INCOME BY
(a) EXPENDITURE METHOD (b) INCOME METHOD FROM THE FOLLOWING
                            DATA                              Rs. in crores
1. Private final consumption expenditure             210
2. Govt: final consumption expenditure                 50
3. Net domestic capital formation                         40
4. Net exports                                                 (-) 5
5. Wages & Salaries                                          170
6. Employer’s contribution                                   10
7. Profit                                                             45
8. Interest                                                         20
9. Indirect taxes                                                 30
10. Subsidies                                                     05
11. Rent                                                            10
12. Factor income from abroad                            03
13. Consumption of fixed capital                          25
14. Royalty                                                        15
Answer: National Income (NNP FC)
Expenditure Method
(1) + (2) + (3) + (4) = NDP MP
210 + 50 + 40 + (-5) = 295
NNP FC = NDP MP + factor Income from abroad – net Indirect tax ( Indirect tax – subsidy)
295 + 3 – (30 -5)
295 + 3 – 25
= 298 – 25 = 273
NNP FC= 273 crores
Income method:
(5) + (6) + (7) + (8) + (11) + (15)
170 + 10 + 45 + 20 + 10 + 15
= 270 (NDP FC)
NDP FC = NDP FC + FIFA
= 270 + 3= 273 crores
 
Question. FROM THE FOLLOWING DATA CALCULATE
(a) NATIONAL INCOME (b) PERSONAL DISPOSIBLE INCOME.
1. Profit                                                    500
2. Rent                                                     200
3. Private income                                     2000
4. Mixed income of self-employed               800
5. Compensation of employers                  1000
6. Consumption of fixed capital                   100
7. Net factor income from abroad                -(50)
8. Net retained earnings of private employees’ 150
9. Interest                                                   250
10. Net exports                                            200
11. Co-operation                                          100
12. Net indirect tax                                      160
13. Direct taxes paid by houses hold’s            120
14. Employers contribution to social security scheme. 60
Answer: NNP FC (N. I) = (5) + (9) + (4) + (1) + (2)
1000 + 250+ 800 + 500 + 200
NDP FC = 2750 crores
NNP FC = NDP FC + (7)
= 2750 + (-50)
NNP Fc = 2700 crores
PDI = (3) – (8) – (11) – (13)
2000 – 150 – 100 -120
PDI = 2000 – 370 = 1630 crores
 
Question. CALCULATE NATIONAL INCOME AND GROSS NATIONAL DISPOSABLE
INCOME FROM THE FOLLOWING DATA.
Net indirect tax                                   05
Net domestic fixed capital formation    100
Net exports                                    (-) 20
Gov.: final consumption expenditure    200
Net current transfer from abroad           15
Private final consumption expenditure  600
Change in stock                                   10
Net factor from abroad                         05
Gross domestic fixed capital formation 125
Answer: National Income (NNP FC)
= (4) + (6) + (2) + (7) + (3) = NDP MP
= 200 + 600 + 100 + 10 + (-20)
= 910 -20 = 890
NDP MP = 890 crores
NNP FC = NDP MP + (8) – (1)
= 890 + 5 -5
NNP FC = 890
Depreciation = (9) – (2)
125 – 100 = 25 crores
GNDI = NNP FC + Net Indirect Tax + Net Current transfers from abroad + depreciation
= 890 = 05+ 15 + 25
GNDI = 935 crores
 
Question. CALCULATE NNP AT MARKET PRICE BY PRODUCTION METHOD AND
INCOME METHOD                  Crores
1. Inter mediate consumption
(a) primary sector                     500
(b) Secondary sector                 400
(c) tertiary sector                      300
2. Value of output of
(a) primary sector                   1,000
(b) Secondary sector                  900
(c) tertiary sector                       700
3. Rent                                        10
4. Emoluments of employers        400
5. Mixed income                          650
6. Operating surplus                    300
7. Net factor income from abroad  -20
8. Interest                                    05
9. Consumptive of fixed capital      40
10. Net indirect tax                       10
Answer: NNP MP by production method
(2) Value of output – (1) Intermediate conspn = value added at MP
(2) a + b+ c – (1) a + b + c
1000 + 900 + 700 – 500 + 400 + 300
2600 – 1200
1400 = GDP MP
NNP MP = GDP MP – (9) + (7)
= 1400 – 40 + (-20)
NNP MP = 1340
Income Method:
NNP MP = (4) + (5) + (6) + (10) + (7)
= 400 + 650 + 300 + 10 + (-20)
NNP MP = 1350 + 10 – 20
 
Question. CALCULATE GNP at FACTOR COST BY INCOME METHOD AND
EXPENDITURE METHOD.                     Rupees in crores
1. Private final consumption expenditure        1000
2. Net domestic capital formation                    200
3. Profit                                                        400
4. Compensation of employers                        800
5. Rent                                                         250
6. Gov.: final consumption expenditure            500
7. Consumption of fixed capital                        60
8. Interest                                                    150
9. Net current transfer from row                   (-)80
10. Net factor income from abroad               (-)10
11. Net exports                                           (-)20
12. Net indirect taxes                                      80
Answer: GNP FC by Income method
GNP FC = 4 + 3 + 5 + 8 + 10 + 7
800 + 400 +250 + 150 + (-10) + 60
GNP FC = 1650 crores
GNP FC by Expenditure Method
GNP FC = 1 + 2 + 6 + 10 + 11 -12 + 7
= 1000 + 200 + 500 + (-10) + (-20) -80 + 60
= 1700 -110 + 60
GNP FC = 1650 crores
 
Question. CALCULATE PRIVATE INCOME AND PERSONAL DISPOSABLE INCOME
FROM THE FOLLOWING DATA                     . Rupees in crores
1. National income                                                     5050
2. Income from property and entrepreneurship to gov.
administrative department                                           500
3. Saving of non-department public enterprises             100
4. Corporation tax                                                        80
5. Current transfer from govt: administrative depart      200
6. Net factor income from abroad                                 -50
7. Direct personal tax                                                  150
8. Indirect taxes                                                         220
9. Current transfer from Raw                                         80
10. Saving of private corporate sector                           500
Answer: Private Income = 1 – 2- 3 + 5 + 9
5050 – 500 – 100 + 200 + 80
5430 – 500
Private Income = 4930 crores
PDI = Private Income – 4 -10 -7
4930 -80 -500 -150
PDI = 4200 crores
 
Question. Calculate private income
1. Income from domestic product accruing to private sector  250
2. Net current transfer from raw                                           40
3Net current transfer from govt: administrative dept              10
4. National debt interest                                                       20
5. Net factor income from abroad                                          05
Answer: Private Income = 1 + 2+ 3 + 4 + 5
250 + 40 + 10 + 20 + 5
= 325 crores
 
Question. CALCULATE NET NATIONAL DISPOSABLE INCOME AND PERSONAL
INCOME FROM THE FOLLOWING DATA   Rs. In crores
1. Net indirect taxes                                        90
2. Compensation of employers                       400
3. Personal taxes                                          100
4. Operating surplus                                     200
5. Corporation profit tax                                 80
6. Mixed income of self-employed                  500
7. National debt interest                                 70
8. Saving of non-departmental enterprises       40
9. Current transfer from govt                          60
10. Income from property and entrepreneurship to govt administrative
Department                                                  30
11. Net current transfer from RAW                  20
12. Net factor income from abroad                 -50
13. saving of private corporate sector              20
Answer: NDPfc = (2) + (4) + (6)
400 + 200 + 500 = 1100 crores
NNDI = NDP fc + (12) + (1) + (11)
=1100 + (-50) + 90 + 20
NNDI = 1210 – 50
= 1160 crores
 
Personal Income
Answer:
Private Income = NDP FC –(8) – (10)
1160 -40 – 30=1090 crores
1090 + 7 + 9 +11 +12
1090 + 70 + 60 + 20 + (-50) = 1190 crores
Personal income = Private Income – Corporation Profit Tax – Savings of private corporate
sectors
1190 – 80 – 20= 1090 crores
 
Question. CALCULATE FROM THE FOLLOWING DATA (A) PRIVATE INCOME (B)
PERSONAL INCOME (C) PERSONAL DISPOSABLE INCOME.
RS IN CRORES
1. Factor income from NDP accruing to private sector      300
2. Income from entrepreneurship and property
3. Accruing to govt administrative departmental                70
4. Savings of non-departmental enterprises                      60
5. Factor income from abroad                                          20
6. Consumption of fixed capital                                        35
7. Current transfer from rest of the world                         15
8. Corporation taxes                                                       25
9. Factor income to abroad                                              30
10. Current transfer from govt governmental admi depart  40
11. Direct taxes paid by house hold                                 20
12. National dept interest                                               05
13. saving of private corporate sector 80
Answer: Private Income = 1 + 5 + 7 -9 + 10 + 12
300 + 20 + 15 -30 + 40 + 05
Private Income = 350 crores
Personal Income = Private income – 8 – 13
= 350 – 25 – 80
Personal Income = 245 crores
PDI = Personal Income - 11
245 – 20
PDI = 225 crores
 
Question. From the following data, calculate:
(a) Gross national Disposable Income
(b) Private Income
(c) Personal Disposable Income                        (Rs. In Crores)
(1) Net national product at factor cost                               700
(2) Indirect taxes                                                              60
(3) Subsidies                                                                    10
(4) Consumption of fixed capital                                         40
(5) Income from property and entrepreneurship
Accruing to government administrative departments             50
(6) Current transfers from rest of the world                          45
(7) Profits                                                                        100
(8) Direct tax paid by households                                        50
(9) Savings of private corporate sector                                 60
(10) Saving of non-departmental enterprises                         25
(11) Current transfer from govt: administrative departments  70
(12) A factor income abroad                                                 20
(13) Factor income to abroad                                                30
(14) Corporation tax                                                             35
Answer: GNDI = 1 + 2 -3 + 6 + 4
700 + 60 – 10 + 45 + 40= 805 -10 + 40 GNDI = 835 crores
b) Private Income = 1 – 5 -10 + 6 +11
700 – 50 -25 + 45 +70
Private Income = 740 crores
c) PDI = Private Income – 14 – 9 – 8
740 – 35 – 60 – 50
PDI = 594 crores
 
Question. Calculate Gross National Disposable Income from the following data:
                                                                    (Rs. In Crores)
(1) National income                                             2000
(2) Net current transfer from rest of the world        200
(3) Consumption of fixed capital                            100
(4) Net factor income from abroad                       (-)50
(5) Net indirect taxes                                            250
Answer: GNDI = 1 + 5 + 2 + 3
2000 + 250 + 200 + 100
GNDI = 2550 crores
 
Question. Calculate Net National Disposable Income from the Following Data:
(Rs. In Crores)
(1) Gross national product at factor cost                  800
(2) Net current transfer from rest of the world           50
(3) Net indirect taxes                                               70
(4) Consumption of fixed capital                                60
(5) Net factor income from abroad                         (-)10
Answer: NNDI = 1 + 2 + 3 -4
800 + 50 + 70 -60
= 860 crores
Part A Microeconomics Chapter 02 Theory of Consumer Behaviour
CBSE Class 12 Economics Theory of Consumer Behaviour Worksheet
Part A Microeconomics Chapter 03 Production and Costs
CBSE Class 12 Economics Production and Costs Worksheet
Part B Macroeconomics Chapter 02 National Income Accounting
CBSE Class 12 Economics National Income Accounting Worksheet
Part B Macroeconomics Chapter 03 Money and Banking
CBSE Class 12 Economics Money And Banking Worksheet
Part B Macroeconomics Chapter 05 Government Budget and The Economy
CBSE Class 12 Economics Government Budget And The Economy Worksheet
Part B Macroeconomics Chapter 06 Open Economy Macroeconomics
CBSE Class 12 Economics Balance Of Payment Worksheet

More Study Material

CBSE Class 12 Economics Part B Macroeconomics Chapter 4 Determination of Income and Employment Worksheet

We hope students liked the above worksheet for Part B Macroeconomics Chapter 4 Determination of Income and Employment designed as per the latest syllabus for Class 12 Economics released by CBSE. Students of Class 12 should download in Pdf format and practice the questions and solutions given in the above worksheet for Class 12 Economics on a daily basis. All the latest worksheets with answers have been developed for Economics by referring to the most important and regularly asked topics that the students should learn and practice to get better scores in their class tests and examinations. Studiestoday is the best portal for Class 12 students to get all the latest study material free of cost.

Worksheet for Economics CBSE Class 12 Part B Macroeconomics Chapter 4 Determination of Income and Employment

Expert teachers of studiestoday have referred to the NCERT book for Class 12 Economics to develop the Economics Class 12 worksheet. If you download the practice worksheet for one chapter daily, you will get higher and better marks in Class 12 exams this year as you will have stronger concepts. Daily questions practice of Economics worksheet and its study material will help students to have a stronger understanding of all concepts and also make them experts on all scoring topics. You can easily download and save all revision worksheet for Class 12 Economics also from www.studiestoday.com without paying anything in Pdf format. After solving the questions given in the worksheet which have been developed as per the latest course books also refer to the NCERT solutions for Class 12 Economics designed by our teachers

Part B Macroeconomics Chapter 4 Determination of Income and Employment worksheet Economics CBSE Class 12

All worksheets given above for Class 12 Economics have been made as per the latest syllabus and books issued for the current academic year. The students of Class 12 can be rest assured that the answers have been also provided by our teachers for all worksheet of Economics so that you are able to solve the questions and then compare your answers with the solutions provided by us. We have also provided a lot of MCQ questions for Class 12 Economics in the worksheet so that you can solve questions relating to all topics given in each chapter. All study material for Class 12 Economics students have been given on studiestoday.

Part B Macroeconomics Chapter 4 Determination of Income and Employment CBSE Class 12 Economics Worksheet

Regular worksheet practice helps to gain more practice in solving questions to obtain a more comprehensive understanding of Part B Macroeconomics Chapter 4 Determination of Income and Employment concepts. Worksheets play an important role in developing an understanding of Part B Macroeconomics Chapter 4 Determination of Income and Employment in CBSE Class 12. Students can download and save or print all the worksheets, printable assignments, and practice sheets of the above chapter in Class 12 Economics in Pdf format from studiestoday. You can print or read them online on your computer or mobile or any other device. After solving these you should also refer to Class 12 Economics MCQ Test for the same chapter.

Worksheet for CBSE Economics Class 12 Part B Macroeconomics Chapter 4 Determination of Income and Employment

CBSE Class 12 Economics best textbooks have been used for writing the problems given in the above worksheet. If you have tests coming up then you should revise all concepts relating to Part B Macroeconomics Chapter 4 Determination of Income and Employment and then take out a print of the above worksheet and attempt all problems. We have also provided a lot of other Worksheets for Class 12 Economics which you can use to further make yourself better in Economics

Where can I download latest CBSE Printable worksheets for Class 12 Economics Part B Macroeconomics Chapter 4 Determination of Income and Employment

You can download the CBSE Printable worksheets for Class 12 Economics Part B Macroeconomics Chapter 4 Determination of Income and Employment for latest session from StudiesToday.com

Can I download the Printable worksheets of Part B Macroeconomics Chapter 4 Determination of Income and Employment Class 12 Economics in Pdf

Yes, you can click on the links above and download Printable worksheets in PDFs for Part B Macroeconomics Chapter 4 Determination of Income and Employment Class 12 for Economics

Are the Class 12 Economics Part B Macroeconomics Chapter 4 Determination of Income and Employment Printable worksheets available for the latest session

Yes, the Printable worksheets issued for Class 12 Economics Part B Macroeconomics Chapter 4 Determination of Income and Employment have been made available here for latest academic session

How can I download the Class 12 Economics Part B Macroeconomics Chapter 4 Determination of Income and Employment Printable worksheets

You can easily access the links above and download the Class 12 Printable worksheets Economics Part B Macroeconomics Chapter 4 Determination of Income and Employment for each chapter

Is there any charge for the Printable worksheets for Class 12 Economics Part B Macroeconomics Chapter 4 Determination of Income and Employment

There is no charge for the Printable worksheets for Class 12 CBSE Economics Part B Macroeconomics Chapter 4 Determination of Income and Employment you can download everything free

How can I improve my scores by solving questions given in Printable worksheets in Class 12 Economics Part B Macroeconomics Chapter 4 Determination of Income and Employment

Regular revision of practice worksheets given on studiestoday for Class 12 subject Economics Part B Macroeconomics Chapter 4 Determination of Income and Employment can help you to score better marks in exams

Are there any websites that offer free test sheets for Class 12 Economics Part B Macroeconomics Chapter 4 Determination of Income and Employment

Yes, studiestoday.com provides all latest NCERT Part B Macroeconomics Chapter 4 Determination of Income and Employment Class 12 Economics test sheets with answers based on the latest books for the current academic session

Can test papers for Class 12 Economics Part B Macroeconomics Chapter 4 Determination of Income and Employment be accessed on mobile devices

Yes, studiestoday provides worksheets in Pdf for Part B Macroeconomics Chapter 4 Determination of Income and Employment Class 12 Economics in mobile-friendly format and can be accessed on smartphones and tablets.

Are worksheets for Part B Macroeconomics Chapter 4 Determination of Income and Employment Class 12 Economics available in multiple languages

Yes, worksheets for Part B Macroeconomics Chapter 4 Determination of Income and Employment Class 12 Economics are available in multiple languages, including English, Hindi