{"id":177191,"date":"2022-08-29T13:05:58","date_gmt":"2022-08-29T07:35:58","guid":{"rendered":"https:\/\/www.cbselabs.com\/?p=177191"},"modified":"2022-08-29T15:51:18","modified_gmt":"2022-08-29T10:21:18","slug":"economics-class-12-important-questions-chapter-2-part-a","status":"publish","type":"post","link":"https:\/\/www.cbselabs.com\/economics-class-12-important-questions-chapter-2-part-a\/","title":{"rendered":"National Income Accounting Class 12 Important Questions and Answers Macroeconomics Chapter 2"},"content":{"rendered":"

We have given these Economics Class 12 Important Questions<\/a> Macroeconomics Chapter 2 National Income Accounting to solve different types of questions in the exam. Go through these National Income Accounting Class 12 Important Questions and Answers Solutions & Previous Year Questions to score good marks in the board examination.<\/p>\n

Important Questions of National Income Accounting Class 12 Macroeconomics Chapter 2<\/h2>\n

Question 1.
\nGive one example of negative externality. (April re-exam 2018)
\nAnswer:
\n“Environmental pollution caused by industrial plants” is an example of negative externalities.<\/p>\n

Question 2.
\nGive the meaning of depreciation. (All India (C) 2014)
\nOr
\nDefine \u2018depreciation\u2019. (All India 2011)
\nAnswer:
\nDepreciation can be defined as a fall in the value of fixed assets due to normal wear and tear due to usage, passage of time or obsolesence.<\/p>\n

\"National<\/p>\n

Question 3.
\nDefine national income. (Delhi 2014)
\nAnswer:
\nNational income can be defined as the sum total of factor incomes accruing to normal residents of a country within the domestic territory and from the rest of the world, in a period of one financial year.<\/p>\n

Question 4.
\nDefine national product. (Delhi 2014)
\nAnswer:
\nNational product can be defined as the money value of all goods and services produced by the normal residents of a country during a period of one financial year.<\/p>\n

Question 5.
\nDefine domestic product. (All India (C) 2014, 2011, 2010)
\nAnswer:
\nThe value of all factor incomes generated during an accounting year within the domestic territory of a country is termed as domestic product or domestic income of a country.<\/p>\n

Question 6.
\nWhat is Nominal Gross Domestic Product? (Delhi 2011)
\nAnswer:
\nNominal Gross Domestic Product (GDP) refers to market value of the final goods and services produced within the domestic territory of a country during a financial year, as estimated using the current year prices. It is also called GDP at current price.<\/p>\n

Question 7.
\nWhat is meant by Real Gross Domestic Product? (Delhi (C) 2011)
\nAnswer:
\nReal Gross Domestic Product (GDP) refers to market value of the final goods and services produced within the domestic territory of a country during a financial year, as estimated using the base year prices. It is also called GDP at constant price.<\/p>\n

Question 8.
\nWhat is transfer payment? (All India 2011)
\nAnswer:
\nTransfer payments are all those unilateral payments corresponding to which there is no value addition in the economy, e.g. gifts, donations etc.<\/p>\n

Question 9.
\nDefine the problem of double counting in the computation of national income. State any two approaches to correct the problem of double counting. (Delhi 2019)
\nAnswer:
\nProblem of double counting means including the value of some goods and services more than once in estimation of national income. In other words, the counting of the value of commodity more than once is called double counting. This leads to over estimation of the value of goods and services produced.<\/p>\n

To avoid the problem of double counting, following two methods are used<\/p>\n