Sandeep Garg Class 12 Macroeconomics Solutions Chapter 4 Measurement of National Income from the latest edition of Sandeep Garg is explained by expert economics students. Solutions to textbook problems in Macroeconomics, 12th Edition. Sandeep Garg Economics Class 12 Solutions are provided by MNS EdTech to provide students with a detailed understanding of the subject.
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Sandeep Garg Solutions Class 12 – Chapter 4 – Part B
Question 1
From the following data about a firm ‘X’ for the year 2000-01, calculate the net value added at a market price during the year.
| Particular | ₹ in crores |
| Sales Closing stock Opening stock Indirect taxes Depreciation Intermediate consumption Purchase of raw materials Rent | 90 25 15 10 20 40 15 5 |
Answer:
Net value added at market price
= Sales + (Closing stock – Opening stock) – Intermediate consumption – Depreciation
= 90 + (25 – 15) – 40 – 20
= ₹40 crores
Question 2
From the following data about a firm ‘X’, calculate the gross value added at factor cost by it.
| Particular | ₹ in crores |
| Sales Opening stock Closing stock Purchase of intermediate products Purchase of machinery Subsidy | 500 30 20 300 150 40 |
Answer:
Gross value added at factor cost
= Sales + (Closing stock – Opening stock) – Purchase of intermediate products + Subsidy
= 500 + (20 – 30) – 300 + 40
= ₹230 crores
Question 3
Calculate the intermediate consumption from the following data.
| Particular | ₹ in crores |
| Value of output Net value added at factor cost Goods and Services Tax (GST) Subsidy Depreciation | 200 80 15 5 20 |
Answer:
Intermediate consumption
= Value of output – Net value added at factor cost – Depreciation – (GST – Subsidy)
= 200 – 80 – 20 – (15 – 5)
= ₹90 crores
Question 4
Calculate the value of output from the following data.
| Particular | ₹ in crores |
| Net value added at factor cost Intermediate consumption Goods and Services Tax (GST) Subsidy Depreciation | 100 75 20 5 10 |
Answer:
Value of output
= Net value added at factor cost + Intermediate consumption + Depreciation + (GST – Subsidy)
= 100 + 75 + 10 + (20 – 5)
= ₹200 crores
Explore link: Basic Concepts of Macroeconomics Solutions
Question 5
Give three differences between national income at current price and national income at constant price.
Answer:
| Parameters | National income at current price | National income at constant price |
| Causes of change | It is affected by the change in both price and quantity. | It is affected by change in the quantity only. |
| Comparison | It is not a suitable tool for comparing the national income of different years. | It is generally used for comparing the national incomes of different years. |
| Index of economic growth | It is not a good tool for measuring the economic growth of a country. | It is a better tool for measuring the economic growth of a country. |
Question 6
Name the three methods of national income.
Answer:
The three methods of national income are:
- Value added method
- Income method
- Expenditure method
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