Download App

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

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsNational Income Accounting3 Marks
Question
Should we treat subsidies as transfer payments?
✓

Answer

  1. No, subsidies should not be treated as transfer payments.
  2. Transfer payments are those payments corresponding to which there is no value addition in the economy, like scholarships to the students or old age pensions.
  3. In the case of subsidies value addition has already occurred.
  4. In fact subsidies tend to lower the market value of the goods produced.
  5. Accordingly, these are added to the market price (while indirect tax is deducted) to make it equal to the factor cost.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "3 Marks Question" from National Income Accounting→National Income Accounting — all question types→Economics STD 12 Humanities & Commerce question papers→Rajasthan Board STD 12 Humanities & Commerce question papers→Rajasthan Board question paper generator→

Similar questions

Depression is a high-handed monster, and if handled carefully it is not so troublesome. Comment.
→
Explain the meaning of deficit in the balance of payments.
→
When exchange rate of foreign currency rises, its supply rises. How? Explain.
→
Main tools of Macroeconomics are demand and supply.
→
If Real GDP is Rs. 200 and Price Index (with base = 100) is 110, Calculate Nominal GDP.
→
What is a positive externality?
Activity resulting in benefits to others is called a positive externality.
→
Calculate Net Value Added at factor cost from the following data:
    (Rs. lakhs)
1 Depreciation. 20
2 Intermediate cost. 90
3 Subsidy. 5
4 Sales. 140
5 Exports. 7
6 Change in stock. (-)10
7 Import of raw materials. 3
→
Assuming real income to be Rs. 200 crane and price index to be 135, Calculate nominal income.
→
Calculate Net National Product at Market Price from the following data:
S.No.
Contents
₹ (in crore)
$(i)$
Net Factor Income from Abroad
 $(-5)$
$(ii)$
Private Final Consumption Expenditure
 $100$
$(iii)$
Personal Tax
 $20$
$(iv)$
Gross National Disposable Income
 $170$
$(v)$
Government Final Consumption Expenditure
 $20$
$(vi)$
Corporation Tax
 $15$
$(vii)$
Gross Domestic Capital Formation
 $30$
$(viii)$
Personal Disposable Income
 $70$
$(ix)$
Net Exports
 $(-)10$
$(x)$
Savings of Private Corporate Sector
 $5$
$(xi)$
Net National Disposable Income
 $145$
→
Explain the circular flow of income.
→