Money and Banking — Economics STD 12 Commerce — Question

Calculate (a) Gross domestic product at market price, and (b) National income:

S. No.		(₹ in crores)
(i)	Government final consumption expenditure.	4,000
(ii)	Private final consumption expenditure	35,00
(iii)	Gross domestic capital formation.	1,100
(iv)	Net exports.	500
(v)	Net factor income from abroad.	100
(vi)	Net factor income from abroad.	300
(vii)	Subsidies.	40
(viii)	Change in stock.	80
(ix)	Consumption of fixed capital.	120

What is monetary policy? State any three instruments of monetary policy.

Differentiate between gross value added and net value added.

What is meant by inflationary gap? State three measures to reduce this gap.

Explain the ‘acceptance of deposits’ function of a commercial bank.

Explain why the tax multiplier is smaller in absolute value than the government expenditure multiplier.

What is APC? How is it calculated?

Read the passage given below and answer the following questions from 1 to 4.
In the Government of India's budget for the year 2013 - 14, the Finance Minister proposed to raise the Goods and Services Tax (GST) on cigarettes. He also proposed to increase income tax on individual earning more than rupee one crore per annum.

1. Identify the taxes proposed to be increased by the Budget 2013 - 14. The taxes proposed are:

1. Goods and Services tax on cigarettes.
2. Income tax on individuals earning Rs. 1 crore or above.
3. Both [a] and [b]
4. None of the above

2. What was the objective(s) behind the proposals put forth in the Budget 2013 - 14?

1. Revenue generation
2. Social welfare
3. Both [a] and [b]
4. None of these

3. What welfare objective the government wishes to achieve by increasing GST on cigarettes?

1. This will discourage their cigarettes
2. This will encourage their cigarettes
3. Both [a] and [b]
4. None of the above

4. What would be the effect of increase in direct tax on the rich?

1. It will reduce the gap between rich and the poor, thereby reducing inequalities in income
2. It will increase the gap between rich and the poor
3. Both [a] and [b]
4. None of the above

Give any three aims of demonetisation.

From the following data calculate net national product at factor cost by (a) income method (b) expenditure method:

		(Rs. in crores)
1	Current transfers from rest of the worth.	100
2	Government final consumption expenditure.	1,000
3	Wages and salaries.	3,800
4	Dividend.	500
5	Rent.	200
6	Interest.	150
7	Net domestic capital formation.	500
8	Profits.	800
9	Employers' contribution to social security schemes.	200
10	Net exports.	(-)50
11	Net factor income from abroad.	(-)30
12	Consumption of fixed capital.	40
13	Private final consumption expenditure.	4,000
14	Net indirect tax.	300