Introduction — Economics STD 12 Commerce — Question

What is the meaning of final goods?

If the Nominal GDP is Rs. 1200 and Price Index (with base = 100) is 120, calculate Real GDP.

Why do non market economic activities, like:

1. Services of housewives.
2. Voluntary services and.
3. Leisure time activities.

help in the flow of goods and services of a country. But why are these not included in the estimation of national income?

Which among the following are final goods and which are intermediate goods? Give reasons.

1. Milk purchased by a tea stall.
2. Bus purchased by a school.
3. Juice purchased by a student from the school canteen.

State the components of capital account of balance of payments.

Explain with the help of a numerical example, how an increase in investment in an economy affects its level of income.

Giving reason, classify the into intermediate or final goods.
Purchase of rice by a grocery shop.

Depression is a high-handed monster, and if handled carefully it is not so troublesome. Comment.

What precautions are necessary while measuring the final expenditure on Gross Domestic Product?
OR
Explain briefly five precautions required to be taken in estimating National Income by expenditure method.