Introduction — Economics STD 12 Commerce — Question

Explain the 'economic stability' objective of a government budget.

From the following data, calculate (a) NNP at FC and (b) NDP at FC.

S. No.		(₹ in crores)
(i)	Depreciation.	2,400
(ii)	Indirect taxes.	3,600
(iii)	Subsidies.	300
(iv)	GNP at MP.	17,450
(v)	Net factor income from abroad.	1,600

Tax rates on higher income group have been increased. Which economic value does it reflect? Explain.

If Real GDP is ₹ 200 and Price Index (with base = 100) is 110, calculate Nominal GDP.

What are implications of fiscal deficit?

Government of India has recently launched 'Jan-Dhan Yojna' aimed at every household in the country to have at least one bank account. Explain how deposits made under the plan are going to affect national income of the country.

Explain the meaning of inflationary gap. Explain any two measures of correcting it.
OR
Explain and graphically represent the concept of inflationary gap. Explain any one measure of removing this gap.

Explain the "bankers' bank" function of the Central Bank.

Explain two merits each of flexible foreign exchange rate and fixed foreign exchange rate.

Calculate Gross National Product at Factor Cost by,

1. Income method.
2. Expenditure method from the following data:

S.No.	Contents	₹ (in crore)
(i)	Net Domestic Capital Formation	500
(ii)	Compensation of Employees	1,850
(iii)	Consumption of Fixed Capital	100
(iv)	Government Final Consumption Expenditure	1,100
(v)	Private Final Consumption Expenditure	2,600
(vi)	Rent	400
(vii)	Dividend	200
(viii)	Interest	500
(ix)	Net Exports	(-)100
(x)	Profit	1,100
(xi)	Net Factor Income from Abroad	(-)50
(xii)	Net Indirect Taxes	250