Holidays Homework Assignment 2– Economics

Class XII

1. Calculate National Income using the Income Method if:

● Wages and salaries = ₹10,000
● Rent = ₹5,000
● Interest = ₹3,000
● Profit = ₹7,000
● Indirect taxes = ₹2,000
● Net factor income earned from abroad = ₹1,500
● Consumption of fixed capital = ₹1,200
2. Calculate National Income using the Value Added Method if:
● Sales = ₹50,000
● Cost of raw materials = ₹10,000
● Wages = ₹15,000
● Rent = ₹5,000
● Interest = ₹3,000
● Depreciation = ₹2,000
● Indirect taxes = ₹2,500
● Subsidies = ₹1,000
3. Calculate National Income using the Expenditure Method if:
● Consumption expenditure = ₹30,000
● Investment expenditure = ₹10,000
● Government expenditure = ₹15,000
● Exports = ₹8,000
● Imports = ₹6,000
● Change in stock = ₹2,000
4. Discuss the circular flow of income in a two-sector economy.
5. Giving reasons state how the following are treated in estimation of national income:
a. Profits earned by an Indian bank from its branches abroad.
b. Dividend received by a foreigner from investment in shares of an Indian company.
c. Dividend received by shareholders.
d. Rent received by Indian residents on their buildings rented out to foreigners in India.
e. Royalty
f. Expenditure on education of children by a family.
g. Purchase of car by a household
h. Fees received from students
i. Expenditure on free services provided by the government.
j. Purchase of tractor by a farmer.
k. Purchase of a machine or refrigerator installed in the production unit by a firm.
l. Contribution of a house by an individual/ Expenditure on adding a floor to the building
m. Net addition to capital stock
n. Addition to the machinery, factory buildings & equipment by the firm
o. Purchase of goods by foreign tourists.
p. Expenditure on fertilizers by a farmer
q. Payment of electricity bill by a school
r. Purchase of uniforms for nurses by a hospital
s. Expenditure on engine oil by car service station.
t. Expenditure by a firm on payment of fees to a chartered accountant or lawyer.

6. Value Added Method:

● Company XYZ's revenue from sales: ₹500,000
● Cost of raw materials: ₹100,000
● Wages paid to workers: ₹150,000
● Rent for the factory: ₹50,000
● Interest paid on loans: ₹20,000
● Calculate the National Income using the Value Added Method.
7. Income Method:
● Calculate National Income using the Income Method if:
● Wages and salaries = ₹200,000
● Rent = ₹50,000
● Interest = ₹30,000
● Profits = ₹100,000
● Indirect taxes = ₹20,000
● Net factor income earned from abroad = ₹10,000
● Consumption of fixed capital = ₹15,000
8. Expenditure Method:
● Calculate National Income using the Expenditure Method if:
● Consumption expenditure = ₹300,000
● Investment expenditure = ₹150,000
● Government expenditure = ₹100,000
● Exports = ₹50,000
● Imports = ₹30,000
● Change in stock = ₹20,000
9. Value Added Method:
● A bakery's sales revenue: ₹200,000
● Cost of ingredients: ₹50,000
● Wages paid to workers: ₹60,000
● Rent for the bakery: ₹30,000
● Interest paid on loans: ₹10,000
● Calculate the National Income using the Value Added Method.
10. Income Method:
● Calculate National Income using the Income Method if:
● Wages and salaries = ₹180,000
 ● Rent = ₹40,000
● Interest = ₹25,000
● Profits = ₹90,000
● Indirect taxes = ₹15,000
● Net factor income earned from abroad = ₹8,000
● Consumption of fixed capital = ₹12,000
11. Expenditure Method:
● Calculate National Income using the Expenditure Method if:
● Consumption expenditure = ₹250,000
● Investment expenditure = ₹120,000
● Government expenditure = ₹80,000
● Exports = ₹40,000
● Imports = ₹20,000
● Change in stock = ₹15,000
12. Value Added Method:
● A manufacturing company's sales revenue: ₹1,000,000
● Cost of raw materials: ₹300,000
● Wages paid to workers: ₹200,000
● Rent for the factory: ₹80,000
● Interest paid on loans: ₹40,000
● Calculate the National Income using the Value Added Method.
13. Income Method:
● Calculate National Income using the Income Method if:
● Wages and salaries = ₹250,000
● Rent = ₹60,000
● Interest = ₹35,000
● Profits = ₹120,000
● Indirect taxes = ₹25,000
● Net factor income earned from abroad = ₹12,000
● Consumption of fixed capital = ₹18,000
14. Expenditure Method:
● Calculate National Income using the Expenditure Method if:
● Consumption expenditure = ₹350,000
● Investment expenditure = ₹180,000
● Government expenditure = ₹120,000
● Exports = ₹60,000
● Imports = ₹40,000
● Change in stock = ₹25,000
15. Value Added Method:
● A consulting firm's revenue: ₹300,000
● Cost of operations: ₹100,000
● Salaries paid to consultants: ₹120,000
● Rent for office space: ₹40,000
● Interest paid on loans: ₹15,000
 ● Calculate the National Income using the Value Added Method.

16. Value Added Method:

● A manufacturing firm's sales revenue: ₹800,000
● Cost of raw materials: ₹200,000
● Wages paid to workers: ₹300,000
● Rent for the factory: ₹100,000
● Interest paid on loans: ₹50,000
● Calculate Gross Domestic Product (GDPMP) using the Value Added Method.
17. Income Method:
● Calculate Gross National Product (GNPFC) using the Income Method if:
● Wages and salaries = ₹250,000
● Rent = ₹60,000
● Interest = ₹40,000
● Profits = ₹150,000
● Indirect taxes = ₹30,000
● Net factor income earned from abroad = ₹20,000
● Consumption of fixed capital = ₹25,000
18. Expenditure Method:
● Calculate Gross Domestic Product (GDPFC) using the Expenditure Method if:
● Consumption expenditure = ₹400,000
● Investment expenditure = ₹200,000
● Government expenditure = ₹150,000
● Exports = ₹80,000
● Imports = ₹60,000
● Change in stock = ₹30,000
19. Value Added Method:
● A software development company's revenue: ₹1,500,000
● Cost of operations: ₹500,000
● Salaries paid to developers: ₹600,000
● Rent for office space: ₹200,000
● Interest paid on loans: ₹75,000
● Calculate Gross Domestic Product (GDPFC) using the Value Added Method.
20. Income Method:
● Calculate Gross National Product (GNPMP) using the Income Method if:
● Wages and salaries = ₹300,000
● Rent = ₹70,000
● Interest = ₹45,000
● Profits = ₹180,000
● Indirect taxes = ₹35,000
● Net factor income earned from abroad = ₹25,000
● Consumption of fixed capital = ₹30,000