ECONOMICS REVISION QUESTIONS-2

1. Suppose the GDP at market price of a country in a particular year was Rs. 1,100
crore.Net factor income from abroad was Rs. 100 crores. The value of Net Indirect Tax
was Rs. 150 crore and National Income was Rs. 850 crores. Calculate the aggregate
value of Depreciation.
2. Find Net Value Added at Factor Cost from the following data:
Sl.no. Contents Rs. (in Crores)
i Purchase of machinery to be used in the 100
production unit
ii Sales 200
iii Intermediate costs 90
iv Indirect taxes 12
v Change in stock 10
vi Excise duty 6
vii Stock of raw material 5
3. (a) Justify that energy crisis can be overcome with the use of renewable sources of
energy
(b) What do you understand by the term ‘Carrying capacity’?

4. Write a brief note on the Great Leap Forward Campaign.

5. Giving reasons explain how should the following be treated in estimation of National
Income:
(a) Value of bonus shares received by shareholders of a company
(b) Capital gains to Indian residents from sale of shares of a foreign company.
(c) Fees received from students.
6. Calculate Net Domestic Product at Factor Cost from the given details:

Sl. No. Contents (Rs. In Crores)

i Private Final Consumption Expenditure 8,000
ii Government Final Consumption Expenditure 1,000
iii Exports 70
iv Imports 120
v Consumption of Fixed Capital 60
vi Gross Domestic Fixed Capital Formation 500
vii Change in Stock 100
viii Factor Income to Abroad 40
ix Factor Income from Abroad 90
x Subsidies 50
xi Indirect taxes 700

7. How do the Global warming factor contribute to the environmental crisis in India?
What problem do they pose for the government?
 8. Only one product D is produced in the country. Its output during the year 2018 and
2019 was 200 and 220 units respectively. The market price of the product during the
year was ₹100 and ₹113 per unit respectively. Calculate the percentage change in real
GDP and nominal GDP in the year 2019 using 2018 as the base year.

9. Find Net Value Added at Market Price

Sl.no. Contents Rs. (in Crores)
i Depreciation 700
ii Output sold (units) 900
iii Price per unit of output 40
iv Closing stock 1000
v Opening stock 800
vi Sales tax 3000
vii Intermediate cost 20000

10. (a) “Sustainable development is a paradigm shift in development thinking”. Comment.

(b) What do you understand by the term ‘Morbidity’?

11. What similar development strategies have India and Pakistan for their respective
development paths?

12. Giving reasons explain how should the following be treated in estimation of National
Income:
(a) Expenditure by a firm on payment of fees to a Chartered Accountant.
(b) Purchase of refrigerator by a firm for own use.
(c) Payment of interest by a bank to an individual.
13. Find National Income from the following details:

Sl. No. Contents (Rs. In Crores)

i Wages and Salaries 1,000
ii Net Current Transfer to Abroad 20
iii Net Factor Income Paid to Abroad 10
iv Profit 400
v National Debt Interest 120
vi Social Security Contribution by Employers 100
vii Current transfers from Government 60
viii National Income accruing to Government 150
ix Rent 200
x Interest 300
xi Royalty 50

14. Explain how the opportunity costs of negative environmental impact are high. Give
any three reasons.
 15. ‘Real Gross Domestic Product is a better indicator of Economic growth than Nominal
Gross Domestic Product’. Do you agree with the given statement? Support your answer
with a suitable numerical example.

16. Using the following data of an imaginary economy, calculate and compare the
Real Gross Domestic Product (GDP) for the given years:
YEAR NOMINAL GDP Rate GDP Deflator
2018-19 7.4% 150
2019-20 10% 130

17. (a) State the principal factors contributing to air pollution in India.
(b) What do you understand by Biocomposting?

18. Explain the "The Great Proletarian Cultural Revolution" of China. Also define Special
Economic Zone.

19. State giving valid reasons, whether the following statements are true or false:
(i) Globalisation has yielded better results for China, compared with India and Pakistan.
(ii) Poverty has declined faster in India than China

20. Can Gross Domestic Product be used as an index of welfare of the people? Give any
three reasons.

21. What are ‘Externalities’? State its types with suitable examples.

22. (a) Define Investment Multiplier.How is it related to marginal propensity to consume?

23. Find National Income from the following details:

Sl. No. Contents (Rs. In Crores)

i Current transfer s by government 15
ii Private final consumption expenditure 400
iii Government final consumption expenditure 100
iv Net factor income from abroad (-)10
v Net domestic capital formation 80
vi Consumption of fixed capital 50
vii Net exports 40
viii Net Indirect taxes 60

24. “Recently Indians have drifted away from traditional knowledge and practices and
caused large scale damage to environment.”
Explain how, adopting the traditional practices can be helpful in achieving the objective of
sustainable development?
25. Suppose the Gross Domestic Product at market price of Nation X was Rs. 2,000 crores
in 2018-19, whereas the Gross Domestic Product of Nation Y in the same year was Rs.
 1,20,000 crores. If the Gross Domestic Product of Nation X rises to Rs. 4,000 crores in
2019-20 and the Gross Domestic Product of Nation Y rises to Rs.2,00,000 crore in 2019-
20. Compare the rate of change of GDP of nation X and Y, taking 2018-19 as base year.

26. Find Net Value Added at Factor Cost from the following data:
Sl.no. Contents Rs. (in Crores)
i Durable use producer goods with a life 10
span of 10 years
ii Single use producer goods 5
iii Sales 20
iv Unsold output produced during the year 2
v Taxes on production 1

27. Has the ‘One Child Policy’ adopted in China succeeded in its aim?

28. Discuss various disadvantages of workers working in the Informal Sector or

unorganised sector.

29. Giving valid reasons explain whether following will be included in estimation of
National Income of India?
(a) Wheat grown by a farmer but used entirely for family consumption.
(b) Rent received by Indian residents on their buildings rented out to foreigners in India.
(c) Old age pension.

30. Calculate National Income from the given details:

Sl. No. Contents (Rs. In Crores)
i Wages and Salaries 1,000
ii Net Current transfers to abroad 20
iii Net factor income paid to abroad 10
iv Profit 400
v National Debt interest 120
vi Social Security contributions by employers 100
vii Rent 200
viii Interest 300
ix Royalty 50

31. Explain how the use of non-conventional sources of energy can have a favourable impact
on the environment?