CBSE 2025, Set 1

Question

(a) (i) On the basis of the data given below, estimate the value of National Income ($NNP_{FC}$)

| S. No. | Items | Amount (in crore) |
|---|---|---|
| (1) | Private final consumption expenditure | 2,000 |
| (2) | Government final consumption expenditure | 1,500 |
| (3) | Gross domestic fixed capital formation | 1,000 |
| (4) | Addition to stock | 400 |
| (5) | Consumption of fixed capital | 50 |
| (6) | Net factor income from abroad | 100 |
| (7) | Net indirect Taxes | 200 |
| (8) | Net Exports | 700 |

(ii) Differentiate between Real flow and Money flow.

Edvaya · Accepted Answer

The correct answer is Subjective. **(i) Estimation of National Income ($NNP_{FC}$):**
National Income ($NNP_{FC}$) = (1) + (2) + (3) + (4) + (8) - (5) + (6) - (7)
$= 2,000 + 1,500 + 1,000 + 400 + 700 - 50 + 100 - 200$
$= 	ext{₹ } 5,450 	ext{ crore}$

**(ii) Differentiate between Real flow and Money flow:**
Real flow refers to the flow of goods and services between households and firms.
Whereas;
Money flow refers to the flow of money in the form of factor payments and payment for goods and services between households and firms.

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Economics > Introductory Macroeconomics > National Income Aggregates

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S. No.	Items	Amount (in crore)
(1)	Private final consumption expenditure	2,000
(2)	Government final consumption expenditure	1,500
(3)	Gross domestic fixed capital formation	1,000
(4)	Addition to stock	400
(5)	Consumption of fixed capital	50
(6)	Net factor income from abroad	100
(7)	Net indirect Taxes	200
(8)	Net Exports	700