Class 12 NCERT Solutions Macro Economics - National Income Accounting - Free PDF Download
FAQs on NCERT Solutions for Class 12 Macro Chapter 2 - National Income Accounting
1. What are the Various Aggregates Included in National Income Accounting?
The aggregates used while calculating the national income of an economy are GDP (Gross Domestic Product), GDP at factor cost, NDP (Net Domestic Product) at market price, NDP at factor cost, NNP (Net National Product) at factor cost, NNP at market price, GNP (Gross National Product) at factor cost, and GNP at market price.
Factor cost in this respect means the value of goods and services, including the factors inputs like raw materials, inputs, etc. Market price, on the other hand, is the final price at which a good or service is being sold in the actual market. It is determined through demand and supply. All the above-mentioned aggregates have different formulas.
2. What are the Different Ways of Calculating National Income?
There are three ways of calculating the national income of a country. The names of these methods are - the product or value - added method, income method, and expenditure method. Starting with the product method, national income here is measured as a flow of goods and services.
The total value of all goods and services existing in an economy is calculated to derive national income. In the income method, national income is treated as a flow of factor incomes (land, labour, capital, and entrepreneur). In the expenditure method, national income is calculated as a flow of expenditure in an economy.
3. What is the Difference Between Capital and Investment?
Capital in terms of an economy implies the source of funds required to generate the flow income. Capital is mandatory to engage in investing activities. On the other hand, investment is related to the purchase and selling of resources.
These resources are utilised to produce goods and services. While capital denotes the source of funds, investment denotes deployment of those funds. Capital is represented as a liability in the balance sheet, while investment is described as an asset. Capital account forms the credit balance, and investment forms the debit balance in income accounting.
4. Where can I get NCERT Solutions for Class 12 Macroeconomics for Chapter 2 PDF?
Students can download the chapter-wise PDF of Vedantu’s Class 12 MacroEconomics NCERT Solutions free of cost. Students should understand and learn the concepts thoroughly, before going through the solutions, so that they can fully grasp the content and the logic behind any topic. More help and guidance regarding this can be availed either on the Vedantu website or app.
5. What is national income accounting Class 12?
National income accounting refers to a governmental agency or a system that is responsible for monitoring a country's economic activity and providing data on how the economy is functioning. Total revenues by domestic corporations, salaries paid, and sales and income tax data for businesses will all be included in such a system. This is explained in the NCERT Class 12 MacroEconomics book.
6. What are the ways of national Income Accounting Class 12?
There are numerous techniques for estimating national income these days. The value-added technique, the income method, and the expenditure approach are the three most prevalent methodologies. The value-added approach is concerned with the value contributed to a product at each step of its manufacturing. These are the primary methods characterized by National Income Accounting. Read about them well and practice the relevant problems related to them.
7. Is MacroEconomics Chapter 2 Class 12 tough?
MacroEconomics can be interesting if you know the methods, but if you don't know the basic concepts and processes involved then it can cause a lot of confusion in your mind and this subject will be really tough for you. It is a huge subject, and it is easy to become lost in the countless concepts and processes. Focus on the fundamentals, and with enough practice, you'll fare well. While solving different problems, you'll also learn about the many sorts of questions that might be asked, as well as the test paper's format.
8. Is it important to do all the Exercises of Chapter 2 Class 12 MacroEconomics?
All exercises have been developed in a well-structured hierarchy of difficulty to quickly evaluate the student's ability to tackle different sorts of problems while also assisting him in bridging the knowledge gap. It is critical to practice all of the activities in order to score well and properly comprehend all of the essential topics. As a result, it is best not to neglect any exercises. If you want to improve your scores and gain a better knowledge of the ideas, go to Vedantu's website and look through their practice modules and solutions to acquire a better comprehension of the topics.