Economics Class 12 English

  CBSE Class–12 economics Revision Notes Macro Economics 05 National Income and Related Aggregate Goods : In economics a goods is defined as any physical object, manmade, that could command a price in the market and   these are the materials that satisfy human wants and provide utility Consumption Goods :  Those final goods which satisfy human wants directly. ex- ice-cream and milk used by the households. Capital Goods : Those final goods which help in production. These goods are used for generating income. These goods are fixed assets of the producers.ex- plant and machinery. Final Goods  are those goods which are used either for final consumption or for investment. Intermediate Goods  refers to those goods and services which are used as a raw material for further production or for resale in the same year. These goods do not fulfill needs of mankind directly. Investment : Addition made to the physical stock of capital during a period of time is called...

CBSE Test Paper-01 Chapter 01 National Income and Related Aggregates Can the gross domestic product be greater than the gross national product?  ( 1) No Yes Never Can’t say State which one of the following is true.  ( 1) Rent is a factor income Royalty is not a factor income Tax is a factor income Subsidies is a factor payment National Income is a  ( 1) Hypothetical concept Non economic concept Stock concept Flow concept Money flow is the flow of  ( 1) Goods only Factor payments Services only Goods and services only What do you mean by gross investments?  ( 1) Define Domestic territory of a country.  ( 1) What is meant by Real Gross Domestic Product?  1 What is real national income?  ( 1) Find Net National Product at Market Price.  (3) S.no. Contents (Rs. in Crores) (i) Personal Taxes 200 (ii) Wages and Salaries 1,200 (iii) Undistributed Profit 50 (iv) Rent 300 (v) Corporate Tax 200 (vi) Personal Income 2,000 (vii) Interest 400 (viii) Ne...

  CBSE Class–12 economics Revision Notes Macro Economics 06 Money and Banking Money:  Money may be defined as anything which is generally acceptable as a medium of exchange and at the same time acts as a measure, store of value and standard of deferred payment. Functions of Money: 1. Primary Functions a. Medium of exchange b. Common measure of value or unit of value 2. Secondary Functions a. Standard of deferred payment b. Store of value c. Transfer of value 3.Contingent Functions a. Basis of credit b. Liquidity c. Basis of price mechanism d. Maximum profit to the producers e. Maximum satisfaction to the consumers f. Basis of distribution of income  Barter Exchange:  It implies the direct exchange of goods for goods without the use of money. Difficulties involved in the Barter Exchange: 1. Lack of a common measure of value. 2. Lack of double coincidence of wants 3. Lacks of standard of deferred payments. 4. Lack of store of value. 5. Lac...