HOLIDAY HOMEWORK (2025-26)

CLASS -12 TH COMMERCE

HOLIDAY HOMEWORK(SESSION 2025-26)
SUB-ECONOMICS
(INDIANECONOMIC DEVELOPMENT)
1. Make proper notes ,learn,revise and solve Case studies of Ch- 1 and ch-2
2. Learn and revise exercise que6of ch-1 and ch-2
3. Write the meaning and explanation of minimum 100 economic terms.like per capita
income etc

INTRODUCTORY MACRO ECONOMICS

3/4/6 MARKS QUESTIONS

1. Differentiate between Final goods and Intermediate goods.
2. All machines (capital good) are producer goods but all producer goods are not machines.
Explain.
3. Differentiate between Stock and Flow concept. Explain why national income is a flow
concept?
4. State and discuss all the common precautions to be considered while estimating national
income
by Expenditure, Income and Product Method.
5. Explain the following:
i. “Compensation to the victims of a cyclone is an example of a welfare measure taken by
the government‟. State with valid reason, should it be included/not included in the
estimation ofnational income of India.
ii. “Domestic/household services performed by a woman may not be considered as
an economic activity‟. Defend or refute the given statement with valid reason.
iii.Meals given to a beggar will not be counted under national income accounts but will
increase the welfare of the economy. Defend or refute the given statement with valid
reason.
iv.What are externalities? Give an example of a positive externality and its impact on
welfare of the people.
6. Explain the problem of double counting. How can we avoid it? Explain with a proper
example.
7. Which of the following are to be treated as normal residents of India? Give reasons.
i. Indian officials working in Indian embassy in china.
 ii. A Chinese tourist who stays in India for two months.
iii. Indians going to Sri Lanka for watching a cricket match.
iv. Foreigners working in WHO located in India.
8. “Households and firms depend on each other in the circular flow of income”. Justify the
statement in case of a two-sector model by real flow and money flow.
9. What is the value of money multiplier when initial deposits are Rs500crs and LRR is 10%?
10.Explain the functions of the Central Bank.
11.Explain different forms and functions of money.
12.Explain the process of Money creation by the commercial banks with the help of a
numerical example.
Or
What role does it play in determining the credit creation power of the banking system?
Use a numerical illustration to explain.
13.Explain briefly the drawback of Barter System.
14.Explain any five precautions to be used while National Income is calculating by:
(a) Income method
(b) Product method
(c) Expenditure method
15.Choose the correct option:
1. GNP at MP = ______
(a) GDPMP – Depreciation (b) GDPMP + Depreciation
(c) GDPMP ÷ Depreciation (d) GDPMP + NFIA
2. NDPMP = ________
(A) GDPMP – Depreciation (B) GDPFC + NFIA
(C) NNPFC + Net indirect taxes (D) All of these
3. NNPMP= ________
(A) GNPMP – Depreciation (B) NDPMP + NFIA
(C) NNP FC + Net indirect taxes (D) All of these
4. GDPFC = _________
(A) GDPMP– Net indirect taxes (B) GDPMP + Net indirect taxes
(C) GDPMP + Subsidies (D) GDPMP – Indirect taxes
5. NDP FC = ___________
(A) GDP FC – Indirect taxes (B) GDP FC – Depreciation
(C) GDP FC + Economic subsidy (D) All of these
6. NNP FC =____________
(A) GNP FC – Depreciation (B) NNPMP + Economic subsidy – Indirect taxes
(C) NDPMP + NFIA (D) All of these
 MULTIPLE CHOICE QUESTIONS
16.Which is Not a factor service:
(a)Land (b) labour (c) rent (d) capital
17.Which one of the following is paid as remuneration on capital?
(a)Rent (b) wages (c) interest (d) profit
18. Nominal GNP is the same as,
(a) GNP at constant prices (b) Real GNP
(b) GNP at current prices (d) GNP less net factor income from abroad
19.Old age pension given to old people by the government is an example of:
(a)Money flow (b) real flow (c) nominal flow (d) both a and c
20.Which one of the following in Not a flow?
(a)Capital (b) income (c) investment (d) depreciation
21.Value of production in converted into factor income after monetary value of goods and
services is(collected/distributed) among factors of production.
22. When households purchase the final goods, there is
(investment/consumption)expenditure and when producers purchase the final goods,
there is ........................... (investment/consumption)expenditure.
23. If Farmer supplies a wheat of 100Rs. Baker sell the Produce a Cake at 200Rs. Baker also
uses 50Rs. as a cost of intermediate Goods used In Cake. What Is the amount of a Total
Value addition?
(a)300 (b) 100 (c) 150 (d)250
24. Measuring the value of goods and services refers to which of the following functions of
money?
(a) Store of value (b) Unit of value
(c) Standard of deferred payments (d) Medium of exchange
25.Which of the following functions of money simplifies the process of borrowing and
lending?
(a) Store of value (b) Medium of exchange
(c) Standard of deferred payments (d) Unit of value
26. Which of the following is not included in money supply?
(a) Currency held by public (b) Inter-bank-deposits
(c) Demand deposits in Banks (d) Saving deposits
27.Expansion Value of money multiplier ………………. with an increase in Cash Reserve Ratio.
(a) Increase (b)Decrease (c) Remain unchanged (d) None of these
 ASSERTION/REASON TYPE QUESTIONS

Give your answers on the basis of following options :

(a) Both Assertionand Reason are true and Reason (R) is the correct explanation of
Assertion (A).
(b) Both Assertion and Reason are true and Reason(R) is not the correct explanation of
Assertion (A).
(c) Assertion(A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.

28.Assertion (A): Real flow and money flow are one or the same thing, presented in a
different form.
Reason (R): In money flow, there is no involvement of goods in its physical form.

29.Assertion (A): Total production is equal to total consumption in the case of circular flow
in a two- sector economy.
Reason (R): The household sector supplies factor services only to firms and the firm
hirefactor services only from households.
30.Assertion (A): Money received from the sale of second-hand cars will be considered
while estimating national income.
Reason (R): Their value is already included and it does not contribute to the current flow
of goods and services

31.Assertion (A): The stock variable does not have a time dimension.
Reason (R): The stock variable is measured over a period of time

32.Assertion (A): Payment for the uniforms of the nurses by the hospital is not included in
national income.
Reason (R): Uniforms provided during the time of work is to be treated as intermediate
consumption.

33.Assertion (A): Currency held by public is a monetary liability of central bank.

Reason (R): Central bank controls credit, whereas commercial banks create credit with
the currency held by public.
34.Assertion (A): Central bank as a banker to the government, works as a financial adviser.
Reason (R): Government borrows internally from banks and general public.

35.Assertion (A): Open market operations are used to influence money supply in the
economy.
 Reason(R): Central bank sells government securities to increase the flow of credit in the
economy.

36.Assertion(A): Supply of money is a flow variable.

Reason(R): It is measured at a point of time.

37.Assertion (A): Banks use the depositors' money to lend to their

customers, which is termed as loans.
Reason (R): Borrowers from various sectors like industry, agriculture,
education, and construction avail loans to conduct their economic
activities.

38.Assertion (A): Macro and micro economics are interdependent on each other and
one cannot study the two in isolation.
Reason (R): Micro economics has a greater degree od aggregation and macro
economics has a lesser degree of aggregation.

NUMERICAL QUESTIONS
1. Calculate GNP at FC (Gross National Product at Factor Cost)

Items ₹ in crores

1. NDP at MP 80,000

2. Net Factor income from

– 200
abroad

3. Deprecation 4,950

4. Subsidies 1,770

5. Indirect Tax 10,600

2. Calculate NNPmp:

Items INR in Rs Crores

1000
i. Profit
15000
ii. Mixed income
200
iii. Dividend
iv. Interest 400
v. COE 7000
vi. Net factor Income to abroad 100
 vii. Consumption of fixed capital 400
viii. Net Export -200
ix. Net indirect taxes 800
x. Net current transfers to ROW 40
xi. Rent 500

3. Calculate: i) NI ii) Depreciation

Sl.No. Item In Rs Crores

i. PFCE 210
ii. GDPmp 320
iii. Wages and salary 170
iv. Employer’s contribution to SSS 10
v. Interest 20
vi. IT 30
vii. Subsidy 5
viii. Rent 10
ix. Profit 45
x. Royalty 15
xi. NFIfA 3

5. Calculate NNPmp:
Items INR in thousand crores
1. Compensation of employees 250
2. Mixed Income of self employed 600
3. Profit 80
4. Rent 30
5. Interest 40
6. Net Factor Income to abroad -10
7. Net Exports 15
8. Consumption of fixed capital 20
9. Net Indirect Taxes 10

6. Calculate the Net Value Added at market price for the firm:
Items INR in thousand crores
1. Sales 400
2. Change in stock -20
3. Depreciation 30
4. Net Indirect taxes 40
5. Purchase of machinery 200
6. Purchase of an intermediate product 250

7. Calculate: i) GDPfc ii) Factor Income to Abroad

1. COE 800
2. Profit 200
3. Rent 150
4. Interest 100
5. Dividend 50
6. GNPmp 140
 0
7. GDCF 300
8. NDFCF 200
9. Change in Stock 50
10. FIfA 60
11. NIT 120

8. Calculate NI by: i) Output Method ii) Income Method

Sl.No. Item In Rs Crores
i. Value of output 800
ii. Value of IC 400
iii. Wages and salary 110
iv. Employer’s contribution to SSS 10
v. Interest & Profit 20
vi. IT 60
vii. Subsidy 10
viii. Rent & Royalty 40
ix. Consumption of fixed capital 50
x. FItA 20
xi. FIfA 10
xii. MI 120

9.Calculate NI by: i) Output Method ii) Expenditure Method

Sl.No. Item In Rs Crores
i. GDCF 250
ii. Net Export -50
iii. PFCE 1000
iv. Value of output of primary sector 900
v. Value of output of secondary sector 800
vi. Value of output of tertiary sector 400
vii. IC of primary sector 400
viii. IC of secondary sector 300
ix. IC of tertiary sector 100
x. Consumption of fixed capital 80

10.Calculate GNPmp by: i) Expenditure Method ii) Income Method

Sl.No. Item In Rs Crores
i. PFCE 900
ii. GFCE 450
iii. COE 500
iv. Employee’s contribution to SSS 60
v. Interest 150
vi. NIT 100
vii. Mixed Income 400
viii. Rent & Royalty 100
ix. Consumption of fixed capital 120
x. Profit 350
xi. NFIfA -20
xii. Net Exports -30
xiii. NDCF 280