Important Questions and answer class 12 Economics chapter 1 | National Income and Related Aggregates

National Income and Related Aggregates :- In this blog we will know about the class 12 economics chapter 1 important questions And all the questions are taken from important questions from XamIdea and important Questions from oswaal mcq class 12 And previous year Questions and many more so from this you can get more idea that how to score higher in your exam Examnoteshub provides all the important questions for class 12 , bcom and important MCQ for CUET and many more So lets Begin :-

Also Read :- MCQ Questions for Class 12 Economics Chapter 1

CBSE Class 12 Macro Economics Important Questions
Chapter – National Income and Related Aggregates

Short Questions Answer

What is macroeconomics?

Answer. Macroeconomics deals with economic issues at the level provides economy as a
whole.

for Example: Problem of unemployment in the economy.

2 . State the basic difference between microeconomics and macroeconomics.

Answer. Microeconomics studies economic relationships or economic problems at the level of an
individual-an individual firm, an individual household or an individual consumer. It is concerned
with determination of output and price for an individual firm or industry.

Macroeconomics studies economic relationships or economic problems or economic issues at the
level of the economy as a whole. It is concerned with determination of aggregate output and a
general price level in the economy as a whole.

3. Give two examples of macroeconomic studies.

Answer. (i) Problem of inflation in India, and
(ii) Problem of unemployment in India.

4. Define macroeconomic variables.

Answer. Macroeconomic variables are the economics variables which study at the level of economy as
a full of whole for  Example: Aggregate demand.

5 . Define economic agents.

Answer. Economic agents are the institutions who works individual are known as economic agents .

6. What is meant by partial equilibrium?

Ans. Partial equilibrium means equilibrium in one market and  on the
assumption that there is no any change other change in a market is known as partial equilibrium .

7. What is meant by general equilibrium?

Ans. General equilibrium means the equilibrium that works in all of the whole market is known as general equilibrium .

Also Read :- Class 12 balance of payment important notes

Short Type Questions : Class 12 National Income Important Questions

1. What is meant by normal residents of a country?

Answer. Normal residents are those residents who live resides of the country but not agjectly where in there country they live in another for there work issue

2 . What is meant by domestic territory of a country?

Ans. Domestic territory of country means to economic territory of a country in which economic activity helps to generate the economics aggregrate .

3. What is factor income?

Answerm. Factor income are those income received by owners in factors of production in which form of rent, wages, interest and profit for the service provided for the process done

4. Define domestic factor income.

Ans. Domestic factor income is income generated in the domestic territory of the country by all enterprises during one year.

5. What are transfer payments or transfer expenditure?

Ans. Transfer payments (or transfer expenditure) are all those unilateral payments corresponding to which
there is no value-addition in the economy. Examples: Gifts and donations.

6. Define voluntary transfers.

Ans. Voluntary transfers are those transfers which flow on account of the free will of the payer and the
recipient.

7. Define forced transfers.

Ans. Forced transfers are compulsory payments, like income tax.

8. Define current transfers.

Ans. Current transfers are those transfers which are paid from the current income of the payer and
added to the current income of the recipient for consumption expenditure.

9. What are capital transfers?

Ans. Capital transfers are the transfers made out of wealth or saving of the payer and included in the
wealth or saving of the recipient.

10. What are capital transfers from abroad?

Ans. Capital transfers from abroad are those transfers which are paid by rest of the world for purpose of
gross capital formation or long-term expenditure.

Case Study : Class 12 National Income Important Questions

Question :- Giving reasons explain how the following should be treated in estimation of national income:
(i) Payment of interest by a firm to a bank.
(ii) Payment of interest by a bank to an individual.
(iii) Payment of interest by an individual to a bank.

Answer . (i) Payment of interest by a firm to a bank is included in national income because firm borrows
money for production purpose and thus, it is a factor payment.
(ii) Payment of interest by a bank to an individual is included in national income because the bank
is expected to have used individual’s saving for productive purpose and thus, this is a factor
payment.
(iii) Payment of interest by an individual to a bank is not included in national income because the
individual uses the loan amount for consumption purpose and not for investment or
productive purpose.

FAQ : Class 12 national income Important Questions

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