National Income Class 12 Notes

National Income and Related Aggregates Class 12 notes

Welcome to my Economics blog post on national income class 12 notes. In this post, I will provide you with unit-wise notes which are updated according to the latest curriculum of CBSE. Apart from this, you will also find important CBSE board questions and also find unit-wise important questions of NCERT here. So it means that this post is providing you a one-stop solution for Economics class 12th, in which we will provide you with all the important content you need to score good marks in class 12 unit-wise in one place. I am going to provide you with National Income and Related Aggregates unit  notes, important CBSE board questions, and NCERT solutions for Macroeconomics class 12

National Income and Related Aggregates Class 12 notes – PDF Download

UNIT= I National Income and Related Aggregates    [10 Marks]

CHAPTER-1 Introduction

•  ECONOMICS
  • Meaning of Economics
  • Types/Branches of Economics
  • Interdependence between Micro and Macro Economics
• SCOPE OF MACRO-ECONOMICS.
• EVALUATION OF MACRO-ECONOMICS.
• MACRO- ECONOMIC SECTORS OF AN ECONOMY.

CHAPTER-2 Basic Concepts of Macroeconomics and Circular of Income

• Basic Concepts of Macroeconomics:-
  • Introduction.
  • Intermediate Goods.
  • Final Goods.
  • (a) Consumption Goods.
  • (b) Capital Goods.
  • The Concepts of stocks and flows.
  • Gross Investment net investment and Depreciation.
• Circular Flow of Income:-
  • Meaning of Circular flow.
  • Principles of circular flow of income.
  • Circular flow of income in a two-sector economy.
  • Circular flow of income in a two-sector economy with a capital market.
  • Importance of the study of the circular flow of income models.
  • Equilibrium of the flow of national income.

CHAPTER- 3 Important Terms & Aggregates of National Income

• CONCEPT OF NATIONAL INCOME
• IMPORTANT TERMS OF NATIONAL INCOME
  • Economic (Domestic) and political territory
  • Citizen and resident or normal resident of a country
  • Gross and Net Concepts
  • Market price and factor costs
  • Indirect taxes and subsidies
  • Net Factor Income from Abroad
  • Depreciation
• NATIONAL INCOME AGGREGATES
  • Gross Domestic Product at Market PriceGross Domestic Product at Factor CostGross National Product of Market PriceGross National Product at Factor CostNet Domestic Product at Market PriceNet Domestic Income or Net Domestic Product at Factor CostNet National Product at Market Price

CHAPTER- 4 Measurement of National Income

• INTRODUCTION
• PRODUCT OR VALUE ADDED METHOD
  • Meaning of Value Added Method
  • Two Approach of Product or Value Added Method
  • Steps Involved in Calculating NI by Value-Added Method 
  • The Problem of Double Counting
• Precautions Involved in Estimating NI by Value-Added Method
• INCOME METHOD
  • Meaning of Income Method
  • What Are Factor Incomes?
  • Classification of Factor Income
  • Steps Involved in Calculating NI by Income Method
  • Precautions Involved in Estimating NI by Income Method
• EXPENDITURE METHOD
  • Meaning of Expenditure Method
  • What is the Final Expenditure?
  • Classification of Final Expenditure
  • Steps Involved in Calculating NI by Expenditure Method
  • Precautions Involved in Estimating NI by Expenditure Method
• NOMINAL GDP AND REAL GDP
  • Meaning of nominal GDP
  • Meaning of Real GDP
  • Difference between Nominal GDP and Real GDP
  • Conversion of Nominal GDP into Real GDP
  • Significance of Real GDP
  • GDP Deflator
  • Green GDP
• REAL GDP AND WELFARE

Economics Class 12 Important Related Links

National Income and Related Aggregates Class 12 YouTube video

Hello students, you can study National Income-related aggregates class 12 from printed colourful notes and along with YouTube videos. For this, I have given you the link to the YouTube playlist related to Macroeconomics class 12 below, where I have uploaded all the videos chapter-wise and unit-wise which you can watch. So you can study along with the notes and also watch the videos. Apart from this, you can also solve CBSE question papers and NCERT questions. In this way, a one-stop solution for Economics class 12th is available to you on our website.

CBSE Board Questions of National Income Class 12 pdf – PDF Download

Here I have arranged last year’s CBSE questions of Unit 1 National Income and Related Aggregates year-wise for you guys, which are updated from almost 2011 to 2024. With this, you guys can scan the entire chapter and you will get an idea of what will be the target study and how to study for the important questions related to National Income.

90% more and less the same questions will come in your exam. So, you can score very well by using this scanner. After my many years of experience in teaching Economics to CBSE Board students, I want to tell you that this scanner can be very useful for you and solve it properly and if you face any problem, you can watch the video on the YouTube channel @economicsclass12and11 to see the solution of all CBSE question of national income.

Benefits of CBSE Board Important Questions of Economics Class 12

The benefits of CBSE Important Question Bank are Point

• With the help of this, you can easily do the target study of the chapter or unit of National Income class 12.
• Language of question paper, you will be able to understand after solving these questions
• The quality of answers will be improved after solving these questions.
• You can score well in board exams of class 12 economics.
  

CBSE Board Paper Questions (2024)

SET-1

1. Read the following statements carefully – Assertion (A) and Reason (R). Choose the correct alternatives: 

Assertion (A): Real Gross Domestic Product is a better indicator of the economic growth of a nation as compared to Nominal Gross Domestic Product.

Reason (R): Real Gross Domestic Product measures the value of goods and services at current-year prices.

Alternatives:

1. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
2. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A). 
3. Assertion (A) is true but Reason (R) is false.
4. Assertion (A) is false but Reason (R) is true. 

2. Estimate the value of the Net National Product at Factor Cost (NNP_FC), using the following information:                                           

3. (a) State the steps for the estimation of National Income by Value Added Method.

(b) “In the past few decades, the Indian economy has been fairly benefitted by positive externalities created by the rapid rise in infrastructure,” Justify the given statement with valid arguments.

SET -2

1. Estimate the value of Net Domestic Product at Factor Cost (NNP_FC), using the following information:   3                                                                        

2. (a) State the steps for the estimation of National Income by Income Method.

(b) “In the past few decades, the Indian economy has been fairly benefitted by positive externalities created by the rapid rise in infrastructure,” Justify the given statement with valid arguments.                                              

SET-3

1. Estimate the value of Gross Domestic Product at Market Price (GDPmp), using the following information:   3                                   

3. (a) State the steps for the estimation of National Income by Expenditure Method.

(b) “In the past few decades, the Indian economy has been fairly benefitted by positive externalities created by the rapid rise in infrastructure,” Justify the given statement with valid arguments.

CBSE Board Paper Questions (2023)

 SET-1 & 2

1. Read the following statements carefully:

Statement 1 – Gross Domestic Product (GDP) is the total gross market value of all the final goods and services added by all the sectors in the economy during a fiscal year.

Statement 2 – Gross Value Added at Market Price (GVAMp) is equal to the excess value of output over intermediate consumption.

In the light of the given statements, choose the correct alternative from the following:

Alternatives:

1. Both the statements are true.
2. Both the statements are false.
3. Statement 1 is true and Statement 2 is false
4. Statement 2 is true and Statement 1 is false

    Or

Based on the figure given below, identify the types of flow indicated by B and D:            (Choose the correct alternative)

Alternatives:

(a) Real Flow             (b) Money flow (c)  Nominal flow                       (d) National flow

2. Based on the data given below for an imaginary economy, estimate the value of Net Domestic Product at factor cost (NDP_FC):     

3. (a) (i) “Many goods and services which may contribute to welfare, but are not included in estimating Gross Domestic Product (GDP).” Do you agree with the given statement? Give a valid reason in support of your answer.     3

     (ii) With suitable examples, distinguish between final goods and intermediate goods.        3

                                                     OR

      (b) (i) Using a suitable numerical example, distinguish between Real Gross Domestic Product (GDP) and Nominal Gross Domestic Product (GDP).                     4

             (ii) State the meaning of ‘normal resident’ of a country. 2        

  SET-3              

1. Based on the data given below for an imaginary economy, estimate the value of Net Domestic Product at factor cost (NDP_FC):     

CBSE Board Paper Questions (2022)

   SET-1

1. When does Net Factor Income from Abroad (NFIA) show Negative Value?   Or State the meaning of retained earnings.

2. Giving valid reasons, explain how the following would be treated while estimating National Income:       

(a) Payment of indirect taxes by a firm. (b) Purchase of goods by foreign tourists.

                                                       Or

Using the following information, calculate and analyze the value of the Gross Domestic Product (GDP) deflator:

Ans: (i) 100, (ii) 125, thus, we may say that the value of the GDP deflator/price level has risen by 25% (125-100) over the given period.

3. (a) (i) From the following data, calculate Net Value Added at Factor Cost (NVA_FC) :

             Ans. (i) NVA_FC = 12500 Crore

  (ii) Why there is a need to make the distinction between final and intermediate goods? Or (b) (i) Discuss briefly the concept of ‘Externalities’, with a suitable example.      (ii) Exports are not a part of ‘Net Factor Income from abroad’. Elaborate the reason behind the given statement.                                                                           

 SET – 2

1. State any two precautions that are taken while estimating National Income by Expenditure Method. Or Distinguish between Gross Domestic Product at Market Price and Net Domestic Product at Market Price.  

  SET-3

1. State any two precautions that are taken while estimating National Income by value-added Method.   Or Distinguish between depreciated and capital loss.

NCERT Solutions of National Income Class 12 – FREE PDF Download

Students, you can download CBSE Economics Class 12th NCERT Solutions for free and I am providing you these solutions unit-wise. In the PDF of NCERT solutions, both the solutions and questions are available with the help of which you can target NCERT because NCERT questions have importance in board exams, and questions based on this are asked in the exam, so this is going to help you a lot in the exam. if you want to score well in Economics Class 12, you should solve NCERT questions and for this, you can download NCERT Solutions of National Income Class 12.

Conclusion

Students, please tell me how you liked this post and how helpful it was for you. Please comment in the comment box so I can improve it further in future posts. If you find something missing, please tell me so that I can improve it further and you can get more benefits by downloading my App GROWTH RATE Institute, and subscribing YouTube channel @economicsclass12and11.

FAQs on National Income Class 12 Notes CBSE

Q 1. What is National Income?

A. National Income is a total of  factors income which is earned by the normal resident during an accounting year

Q 2. What are the different methods to measure National Income?

A. There are three methods of calculating national income valued method, income method, and  expenditure method, and all three are related and the answer to national income will be the same from all three methods

Q 3. What is the difference between Nominal GDP and Real GDP?

A. Yes, there is a difference between the nominal GDP and real GDP. Nominal GDP is calculated on the current year price and the real GDP is calculated on the base year price.

Q 4. How to study National Income for the CBSE board exam class 12?

A. For board exams, you can study national income by doing a target study. In this, you can focus more on three topics. First, numerical, which always has questions in the board exam. Second, the statement questions included and excluded national income, and third, questions came on real GDP and nominal GDP.