# Sandeep Garg Macroeconomics Class 12: Chapter 4 Measurement of National Income

Sandeep Garg Class 12 Macroeconomics Solutions Chapter 4 Measurement of National Income is explained by the expert economics teachers from the latest edition of Sandeep Garg. Macroeconomics Class 12 textbook solutions. We at BYJUâ€™S provide Sandeep Garg Economics Class 12 Solutions to give comprehensive insight about the subject to the students.

These insights help as a priceless benefit to students while completing their homework or while studying for their exams. There are numerous concepts in economics, but here we provide you the solution from Measurement of National Income, which will be useful for the students to score well in the board exams.

## Sandeep Garg Solutions Class 12 â€“ Chapter 4 â€“ Part B

Question 1

From the following data about a firm â€˜Xâ€™ for the year 2000-01, calculate the net value added at a market price during the year.

 Particular â‚¹ 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

Net value added at market price

= Sales + (Closing stock – Opening stock) – Intermediate consumption – Depreciation

= 90 + (25 – 15) – 40 – 20

= â‚¹40 crores

Question 2

From the following data about a firm â€˜Xâ€™, calculate the gross value added at factor cost by it.

 Particular â‚¹ in crores Sales Opening stock Closing stock Purchase of intermediate products Purchase of machinery Subsidy 500 30 20 300 150 40

Gross value added at factor cost

= Sales + (Closing stock – Opening stock) – Purchase of intermediate products + Subsidy

= 500 + (20 – 30) – 300 + 40

= â‚¹230 crores

Question 3

Calculate the intermediate consumption from the following data.

 Particular â‚¹ in crores Value of output Net value added at factor cost Goods and Services Tax (GST) Subsidy Depreciation 200 80 15 5 20

Intermediate consumption

= Value of output – Net value added at factor cost – Depreciation – (GST – Subsidy)

= 200 – 80 – 20 – (15 – 5)

= â‚¹90 crores

Question 4

Calculate the value of output from the following data.

 Particular â‚¹ in crores Net value added at factor cost Intermediate consumption Goods and Services Tax (GST) Subsidy Depreciation 100 75 20 5 10

Value of output

= Net value added at factor cost + Intermediate consumption + Depreciation + (GST – Subsidy)

= 100 + 75 + 10 + (20 – 5)

= â‚¹200 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.

 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.

The three methods of national income are: