National Income Accounting — Economics STD 12 Humanities & Commerce — Question

Giving reasons, classify the following into intermediate goods and final goods:

1. A machine purchased for installation in a factory.
2. Fees paid to a lawyer by a producer.
3. Milk purchased by a hotel.

Giving reasons, categorise the following into revenue receipts and capital receipts:

1. Recovery of loans.
2. Corporation tax.
3. Dividends on investments made by government.
4. Sale of a public sector undertaking.

Explain the "varying reserve requirements" method of credit control by the central bank.

Name two sources each of non-tax revenue receipts.

Distinguish between ‘revenue expenditure’ and ‘capital expenditure’. Give two examples of each.

If the Real Gross Domestic Product is ₹ 200 and the Nominal Gross Domestic Product is ₹ 210, calculate the Price Index (base = 100).

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

With the help of suitable example explain the problem of ‘for whom to produce’.

From the following data calculate: (a) Private income, and (b) Personal disposable income:

S.No.		Rs. (in crores)
1	Income from domestic product accuring to the private sector.	4,000
2	Saving of non-departmental public entreprises.	200
3	Current transfers from government administrative departments.	150
4	Saving of private corporate sector.	400
5	Current transfers from rest of the world.	50
6	Net factor income from abroad.	-40
7	Corporation tax.	60
8	Direct personal taxes.	140