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 Economic teachers from the latest edition of Sandeep Garg Macroeconomic Class 12 textbook solutions. We at BYJU’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 – Chapter 4 – Part B

Question 1

From the following data about a firm ‘X’ for the year 2000-01, calculate the net value added at a market price during the year.

Particular ₹ 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

Solution:

Net value added at market price

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

= 90+ (25-15) -40 – 20

= ₹ 40 crores

Question 2

From the following data about a firm ‘X’ calculate gross value added at factor cost by it

Particular ₹ in crores
Sales

Opening stock

Closing stock

Purchase of intermediate products

Purchase of machinery

Subsidy

500

30

20

300

150

40

Solution:

Gross value added at factor cost

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

= 500+ (20-30) – 300 +40

= ₹230 thousand

Question 3

Calculate intermediate consumption from the following data

Particular ₹ in crores
Value of Output

Net value added at factor cost

Goods and services tax (GST)

Subsidy

Depreciation

200

80

15

5

20

Solution:

Intermediate consumption

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

= 200 – 80 – 20 – (15 – 5)

= ₹90 lakhs

Question 4

Calculate the value of output from the following data

Particular ₹ in crores
Net value added at factor cost

Intermediate consumption

Goods and services tax (GST)

Subsidy

Depreciation

100

75

20

5

10

Solution:

Value of Output

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

= 100 + 75 + 10 + (20 – 5)

= ₹200 lakhs

Explore link: Basic Concepts of Macroeconomics Solutions

Question 5

Give three differences between National income at Current price Vs National income at Constant price

Ans:

Basis National income at Current price National income at Constant price
Causes of change It is affected by a change in both price and quantity It is affected by change n the quantity only
Camparison Not suitable toll for comparing the national income of different years It is generally used for comparing the national incomes of different years
Index of Economic Growth 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

Ans: The three methods of national income are.

  • Value Added Method
  • Income Method
  • Expenditure Method

The above-provided solutions are considered to be the best solution for ‘Sandeep Garg Macroeconomic Class 12 Solutions Chapter 4 Measurement of National Income. Stay tuned to BYJU’S to learn more.

Leave a Comment

Your email address will not be published. Required fields are marked *