Class 12 Economics Important Chapter 2 National Income And Related Aggregates

Class 12 Economics Important Chapter 2 National Income And Related Aggregates Solutions English Medium As Per The New Syllabus to each chapter is provided in the list so that you can easily browse through different chapters ASSEB Class 12 Economics Important Solutions in English and select need one. AHSEC Class 12 Economics Additional Notes Download PDF. HS 2nd Year Economics Additional Solutions.

Class 12 Economics Important Chapter 2 National Income And Related Aggregates

Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. ASSEB Class 12 Economics Additional Question Answer are part of All Subject Solutions. Here we have given HS 2nd Year Economics Important Solutions English Medium for All Chapters, You can practice these here.

National Income And Related Aggregates

Chapter: 2

PART – A: INTRODUCTORY MICROECONOMICS

IMPORTANT QUESTION AND ANSWER

Short Questions and Answers:

1. What are intermediate goods?

Ans: Intermediate goods are goods and services purchased by a production unit from other production units for resale or for use as inputs in the production process within the same year.

2. Give one example of a final good.

Ans: Milk purchased by a household for consumption is a final good.

3. What is meant by consumer goods?

Ans: Consumer goods are goods used by people to satisfy their wants directly.

4. Define capital goods.

Ans: Capital goods are fixed assets like machinery, equipment, and buildings used in the production of other goods.

5. How is gross investment different from net investment?

Ans: Gross investment includes total addition to capital stock including depreciation, whereas net investment excludes depreciation.

6. What is inventory?

Ans: Inventory is the stock of unsold finished goods, semi-finished goods, or raw materials held by a firm at a given point in time.

7. State one cause of depreciation.

Ans: Normal wear and tear due to continuous use is a cause of depreciation.

8. What is a stock variable?

Ans: A stock variable is measured at a particular point in time, like the stock of goods on a specific date.

9. What does domestic territory mean in national income accounting?

Ans: Domestic territory refers to the geographical area administered by a government, including territorial waters, embassies abroad, and ships operated by residents.

10. Who is called a normal resident?

Ans: A normal resident is a person or institution whose centre of economic interest lies within the domestic territory of a country.

11. What are factor incomes?

Ans: Factor incomes are incomes earned by owners of factors of production for their productive services, like wages, rent, interest, and profit.

12. Define value added.

Ans: Value added is the difference between the value of output and the value of intermediate consumption.

13. What is a closed economy?

Ans: A closed economy is one that does not have any economic relations with the rest of the world.

14. What is Net Factor Income from Abroad (NFIA)?

Ans: NFIA is the difference between factor income received from abroad and factor income paid to abroad.

15. What are net indirect taxes?

Ans: Net indirect taxes are the difference between indirect taxes and subsidies.