{"id":12771,"date":"2021-12-17T12:09:05","date_gmt":"2021-12-17T06:39:05","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=12771"},"modified":"2024-12-26T19:47:55","modified_gmt":"2024-12-26T14:17:55","slug":"12th-economics-chapter-7-solutions","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-7-solutions\/","title":{"rendered":"12th Economics Chapter 7 Solutions (National Income) Maharashtra Board &#8211; Free Solution"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69edae9d6fe44\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69edae9d6fe44\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-7-solutions\/#12th_Economics_Chapter_7_Solutions\" >12th Economics Chapter 7 Solutions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-7-solutions\/#Chapter_7_%E2%80%93_National_Income\" >Chapter 7 &#8211; National Income<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-7-solutions\/#Q_1_Complete_the_following_statements\" >Q. 1. Complete the following statements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-7-solutions\/#Q_2_Complete_the_Correlation\" >Q. 2. Complete the Correlation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-7-solutions\/#Q_3_Choose_the_correct_option\" >Q. 3. Choose the correct option<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-7-solutions\/#Q_4_Identify_and_Explain_the_following_concepts\" >Q. 4. Identify and Explain the following concepts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-7-solutions\/#Q5_Answer_the_following\" >Q.5. Answer the following<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-7-solutions\/#Q6_State_with_reasons_whether_you_agree_or_disagree_with_the_following_statement\" >Q.6. State with reasons whether you agree or disagree with the following statement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-7-solutions\/#Q7_Answer_in_detail\" >Q.7. Answer in detail<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-7-solutions\/#Extra_Questions\" >Extra Questions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-7-solutions\/#Solution_of_all_Chapters_of_Economics\" >Solution of all Chapters of Economics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-7-solutions\/#Check_out_other_posts_related_to_the_12th_Commerce\" >Check out other posts related to the 12th Commerce<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"12th_Economics_Chapter_7_Solutions\"><\/span>12th Economics Chapter 7 Solutions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/12\/12th-Economics-Chapter-7-Solutions-1024x576.jpg\" alt=\"12th Economics Chapter 7 Solutions\nNational Income (Maharashtra Board)\" class=\"wp-image-12889 lazyload\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;width:720px;height:auto\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/12\/12th-Economics-Chapter-7-Solutions-1024x576.jpg 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/12\/12th-Economics-Chapter-7-Solutions-300x169.jpg 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/12\/12th-Economics-Chapter-7-Solutions-768x432.jpg 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/12\/12th-Economics-Chapter-7-Solutions-1536x864.jpg 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/12\/12th-Economics-Chapter-7-Solutions-640x360.jpg 640w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/12\/12th-Economics-Chapter-7-Solutions.jpg 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" \/><figcaption class=\"wp-element-caption\">12th Economics Chapter 7 Solutions<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-center has-black-color has-vivid-green-cyan-background-color has-text-color has-background has-medium-font-size\"><span class=\"ez-toc-section\" id=\"Chapter_7_%E2%80%93_National_Income\"><\/span><strong>Chapter 7 &#8211; <\/strong>National Income<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q_1_Complete_the_following_statements\"><\/span>Q. 1. Complete the following statements<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>1) While estimating national income, we include only value of final goods and services in order to \u2026\u2026\u2026<br><\/strong>a) make computation easier<br><strong><span class=\"has-inline-color has-vivid-purple-color\">b) avoid double counting<br><\/span><\/strong>c) maximize national welfare of the people<br>d) evaluate the total economic performance of a nation<\/p>\n\n\n\n<p><strong>2) NDP is obtained by \u2026\u2026\u2026.<br><\/strong>a) deducting depreciation from GNP<br><strong><span class=\"has-inline-color has-vivid-purple-color\">b) deducting depreciation from GDP<br><\/span><\/strong>c) including depreciation in GDP<br>d) including depreciation in GNP<\/p>\n\n\n\n<p><strong>3) In India, national income is estimated using \u2026\u2026\u2026..<br><\/strong>a) output method<br>b) income method<br>c) expenditure method<br><strong><span class=\"has-inline-color has-vivid-purple-color\">d) combination of output and income method<\/span><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q_2_Complete_the_Correlation\"><\/span>Q. 2. Complete the Correlation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>1) <strong>GDP <\/strong>: C + I + G + (X-M) : : GNP : C + I + G + (X-M) + (R-P).<br>2) Output method : <strong>Inventory Method<\/strong> : : Income method : Factor cost method<br>3) Theoretical difficulty : Transfer payments : : <strong>Practical difficulty<\/strong> : Valuation of Inventories<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q_3_Choose_the_correct_option\"><\/span>Q. 3. Choose the correct option<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>1) Wrongly matched pair :<br><\/strong>a) National Income Committee: 1949<br>b) Financial year: 1st April to 31st March<br>c) Income method : National Income = Rent+Wages+Interest+Profit+Mixed income+Net Income from abroad<br>d) Expenditure method : National Income = Rent + Wages + Interest + Profit<\/p>\n\n\n\n<p>Options: 1) a  2) b  3) c  4) d<br>Answer: 4) d<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" target=\"_blank\" rel=\"noreferrer noopener\">Solution of other subjects<\/a><br><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-textbook-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-textbook-solutions\/\">Solution of all Chapters of Economics<br><\/a> <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-economics-chapter-1\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-economics-chapter-1\/\" target=\"_blank\" rel=\"noreferrer noopener\">1<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-2\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-2\/\">2<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-3a\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-3a\/\" target=\"_blank\" rel=\"noreferrer noopener\">3A<\/a> &#8211; <strong><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-3b\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-3b\/\">3B<\/a> &#8211;<\/strong> <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-4-exercise\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-4-exercise\/\" target=\"_blank\" rel=\"noreferrer noopener\">4<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-5-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-5-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">5<\/a><\/strong> <strong>&#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-6-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-6-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">6<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-7-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-7-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">7<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-8-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-8-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">8<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-9-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-9-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">9<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-10-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-10-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">10<\/a><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q_4_Identify_and_Explain_the_following_concepts\"><\/span>Q. 4. Identify and Explain the following concepts<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>1) Vrinda receives a monthly pension of Rs.5,000\/- from the State Government.<\/strong><br><\/mark><strong>Identified Concept:<\/strong> Transfer Income<br><strong>Explanation:<\/strong> Transfer income refers to&nbsp;the income received without rendering any productive service in return. Transfer income refers to the income received without rendering any productive service in return.<\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">2) Viru kept aside 100 kgs. out of 500 kgs. of wheat produced in his farm for his family.<br><\/span>Identified Concept:<\/strong> Self-consumption<br>Explanation: The product for self-consumption is the part of the product that is set aside to meet the needs of self and family.<\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">3) Sheetal purchased wheat flour for her bakery from the flour mill.<br><\/span>Identified Concept:<\/strong> Intermediate goods.<br><strong>Explanation:<\/strong> An intermediate good is&nbsp;a product used to produce a final good or finished product\u2014also referred to as a consumer good.<\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">4) Shobha collected data regarding the money value of all final goods and services produced in the country for the financial year 2018-2019.<br><\/span>Identified Concept:<\/strong> National Income<br><strong>Explanation:<\/strong> In real terms, national income is the flow of goods and services produced in an economy during a year.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">5) Rajendra has a total stock of 500 gel pens in his shop which includes the 200 gel pens produced in the previous financial year.<br><\/mark>Identified Concept:<\/strong> Inventory<br><strong>Explanation:<\/strong> A company always has some stock lying with them. The stock can be of finished goods or raw materials or semi-finished goods. This&nbsp;stock&nbsp;of materials is what we refer to as inventory.<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" target=\"_blank\" rel=\"noreferrer noopener\">Solution of other subjects<\/a><br><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-textbook-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-textbook-solutions\/\">Solution of all Chapters of Economics<br><\/a> <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-economics-chapter-1\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-economics-chapter-1\/\" target=\"_blank\" rel=\"noreferrer noopener\">1<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-2\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-2\/\">2<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-3a\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-3a\/\" target=\"_blank\" rel=\"noreferrer noopener\">3A<\/a> &#8211; <strong><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-3b\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-3b\/\">3B<\/a> &#8211;<\/strong> <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-4-exercise\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-4-exercise\/\" target=\"_blank\" rel=\"noreferrer noopener\">4<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-5-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-5-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">5<\/a><\/strong> <strong>&#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-6-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-6-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">6<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-7-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-7-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">7<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-8-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-8-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">8<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-9-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-9-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">9<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-10-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-10-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">10<\/a><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q5_Answer_the_following\"><\/span>Q.5. Answer the following<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>1) Explain the two sector model of circular flow of national income.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong>  Circular flow of income is the basic concept in macroeconomics. The circular flow of income refers to the process whereby an economy&#8217;s money receipts and payments flow in a circular manner continuously through time.<\/p>\n\n\n\n<p><strong>The circular flow of goods and money in a two-sector model is explained below<\/strong>:<\/p>\n\n\n\n<p>1) Two sector Economy (Households and Business Firms.) Y = C + I<br>2) There are two sectors, households and firms. It divides the diagram into two parts. The upper half represents the factor market and the lower half represents the commodity market.<\/p>\n\n\n\n<p>3) Below fig. explains the circular flow of income and expenditure in a two-sector model.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>4) In the above figure, the factors of production flow from the households to the firms. The firms use these factors to produce goods and services required by the households. Thus, goods flow from the households to the firms and from the firms back to the households. It is called product flows.<\/p>\n\n\n\n<p>5) In the same way, money flows from the firms to the households in the form of factor payments such as rent, wages, interest, and profit. Households use this income to purchase goods and services. Thus, money flows from the firms to the households and from the households back to the firms. It is called money flows.<\/p>\n\n\n\n<p>6) In the circular flow of income, production generates factor income, which is converted into expenditure. This flow of income continues as production is a continuous activity due to never-ending human wants. It makes the flow of income circular<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>2) Explain the importance of national income.<\/strong><\/mark><\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">.<\/span>Answer:<\/strong> The total income of the nation is called national income.<\/p>\n\n\n\n<p><strong>The following points explain the importance of the National Income<\/strong><\/p>\n\n\n\n<p><strong>1) Useful for the Economy:<\/strong><\/p>\n\n\n\n<p>National income data are important for the economy of a country. In present times, the national income data are regarded as accounts of the economy, which are known as \u2018Social Accounts\u2019. It tells us how the aggregates of a nation&#8217;s income, output, and product result from the income of different individuals, products of industries and transactions of international trade.<\/p>\n\n\n\n<p><strong>2) National policies:<\/strong><\/p>\n\n\n\n<p>National income data forms the basis of national policies such as employment policy, industrial policy, agricultural policy, etc. These figures enable us to know the direction in which the industrial output, investment, and saving, etc., change.<\/p>\n\n\n\n<p><strong>3) Economic planning:<\/strong><\/p>\n\n\n\n<p>For economic planning, data pertaining to national income is very essential. This includes data related to a country&#8217;s gross income, output, savings, investment and consumption which can be obtained from different sources.<\/p>\n\n\n\n<p><strong>4) Economic Research:<\/strong><\/p>\n\n\n\n<p>National income data are also used by the research scholars of economics. They make use of various data of the country&#8217;s input, output, income, savings, consumption, investment employment etc., which are obtained from social accounts.<\/p>\n\n\n\n<p><strong>5) Comparison of Standard of Living:<\/strong><\/p>\n\n\n\n<p>National income data helps us to compare the standards of living of people in different countries and of people living in the same country at different times.<\/p>\n\n\n\n<p><strong>6) Distribution of Income:<\/strong><\/p>\n\n\n\n<p>National income statistics enable us to know about the distribution of income in the country from the data related to wages, rent, interest, and profits. We understand the disparities in the incomes of different sections of society.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>3) Explain the features of national income.<\/strong><\/mark><\/p>\n\n\n\n<p><strong><strong>Answer:<\/strong><\/strong> The total income of the nation is called national income.<\/p>\n\n\n\n<p><strong>1) Macro Economic concept:<\/strong><\/p>\n\n\n\n<p>National income represents the income of the economy as a whole rather than that of an individual. Hence it is a macroeconomic concept.<\/p>\n\n\n\n<p><strong>2) Value of only final goods and services:<\/strong><\/p>\n\n\n\n<p>In order to avoid double-counting in national income, the value of only final goods and services produced in the economy are considered. The value of intermediate goods or raw materials is not considered. For example, while estimating the production of shirts, there is no need to take the value of cotton, as it is already included in the price of the shirts.<\/p>\n\n\n\n<p><strong>3) Net aggregate value:<\/strong><\/p>\n\n\n\n<p>National income includes net value of goods and services produced and does not include depreciation cost. (i.e. wear and tear of capital assets)<\/p>\n\n\n\n<p><strong>4) Net income from abroad:<\/strong><\/p>\n\n\n\n<p>National income includes net income from abroad i.e. difference between export value and import value (X-M) and net difference between receipts from abroad and payments made abroad (R-P).<\/p>\n\n\n\n<p><strong>5) Financial year:<\/strong><\/p>\n\n\n\n<p>National income is always expressed with reference to a time period. In India, it is from 1st April to 31st March.<\/p>\n\n\n\n<p><strong>6) Flow concept:<\/strong><\/p>\n\n\n\n<p>National income is a flow concept as it shows a flow of goods and services produced in the economy during a<br>year.<\/p>\n\n\n\n<p><strong>7) Money value:<\/strong><\/p>\n\n\n\n<p>National income is always expressed in monetary terms. It represents only those goods and services which are<br>exchanged for money.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>4) Explain the concept of Green GNP.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong> a) Green GNP is an indicator of sustainable use of the natural environment and equitable distribution of benefits of development.<\/p>\n\n\n\n<p>b) Gross National Product does not take into consideration the cost in terms of <br>(i) Environmental pollution, (ii) Depletion of natural resources caused by the production of output. <\/p>\n\n\n\n<p>c) Mere increase in GNP will not reflect improvement in quality of life when it increases environmental pollution or reduces available resources for future generations.<br>So Green GNP has been introduced while measuring economic welfare.<\/p>\n\n\n\n<p><strong>Measurement :<br><\/strong>Green GNP = GNP &#8211; (Net fall in stock of natural capital + pollution load.)<\/p>\n\n\n\n<p><strong>Following are the characteristics of Green GNP<\/strong><\/p>\n\n\n\n<p>1) Sustainable economic development, i.e. development that should not cause environmental degradation (pollution) and depletion of natural resources.<br>2) Equitable distribution of benefits of its development.<br>3) Promotes economic welfare for a long period of time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q6_State_with_reasons_whether_you_agree_or_disagree_with_the_following_statement\"><\/span>Q.6. State with reasons whether you agree or disagree with the following statement<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>1) There are many theoretical difficulties in the measurement of national income.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Ans<\/strong>: Yes, I agree with this statement.<br><strong>Reason:<\/strong><\/p>\n\n\n\n<p><strong>a) Transfer payments:<\/strong><\/p>\n\n\n\n<p>Individuals get pension, unemployment allowance etc. but whether these transfer payments should be included in national income or not, is a major problem.<\/p>\n\n\n\n<p><strong>b) Illegal income:<\/strong><\/p>\n\n\n\n<p>Illegal incomes like income from gambling, black marketing, theft, smuggling etc. are not included in national income.<\/p>\n\n\n\n<p><strong>c) Production for self-consumption:<\/strong><\/p>\n\n\n\n<p>The products kept for self-consumption by the farmers and other allied producers do not enter the market. Hence, it is not accounted for in the National Income.<\/p>\n\n\n\n<p><strong>d) Income of foreign firms:<\/strong><\/p>\n\n\n\n<p>According to IMF, income of a foreign firm, should be included in the national income of the country, where the firm actually undertakes the production work.<br>Hence, there are many theoretical difficulties in the measurement of national income.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>2) Under the output method, the value-added approach is used to avoid double counting.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Ans<\/strong>: Yes, I agree with this statement.<br><strong>Reason:<\/strong> a) According to this approach, the value added at each stage of the production process is included.<br>b) The difference between the value of final outputs and inputs, at each stage of production is called the value-added.<br>c) Thus, GNP is obtained as the total of the values added by all the different, stages of the production process, till the final output is reached in the hands of consumers, to meet the final demand.<br>d) Therefore, To avoid double-counting value-added approach is used.<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" target=\"_blank\" rel=\"noreferrer noopener\">Solution of other subjects<\/a><br><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-textbook-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-textbook-solutions\/\">Solution of all Chapters of Economics<br><\/a> <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-economics-chapter-1\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-economics-chapter-1\/\" target=\"_blank\" rel=\"noreferrer noopener\">1<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-2\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-2\/\">2<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-3a\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-3a\/\" target=\"_blank\" rel=\"noreferrer noopener\">3A<\/a> &#8211; <strong><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-3b\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-3b\/\">3B<\/a> &#8211;<\/strong> <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-4-exercise\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-4-exercise\/\" target=\"_blank\" rel=\"noreferrer noopener\">4<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-5-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-5-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">5<\/a><\/strong> <strong>&#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-6-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-6-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">6<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-7-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-7-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">7<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-8-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-8-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">8<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-9-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-9-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">9<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-10-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-10-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">10<\/a><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q7_Answer_in_detail\"><\/span>Q.7. Answer in detail<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>1) Explain the practical difficulties involved in the measurement of national income.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong> The total income of the nation is called national income. In real terms, national income is the flow<br>of goods and services produced in an economy during a year.<\/p>\n\n\n\n<p><strong>Theoretical Difficulties or Conceptual Difficulties<\/strong>: In practice, several difficulties arise in the collection of statistical data required for estimation of national income. Some of the practical difficulties are as follows:<\/p>\n\n\n\n<p><strong>1) Problem of double counting:<\/strong><\/p>\n\n\n\n<p>The greatest difficulty in calculating national income is of double counting. It arises from the failure to distinguish properly, between a final and an intermediate product. For example, flour used by a bakery is an intermediate product and that by a household is final product.<\/p>\n\n\n\n<p><strong>2) Existence of non-monetized sector:<\/strong><\/p>\n\n\n\n<p>In India, especially in rural areas, there exists the non-monetized sector. Agriculture, still being in the nature of subsistence farming, a major part of production is partly exchanged for other goods and services. It is excluded while counting national income.<\/p>\n\n\n\n<p><strong>3) Inadequate and unreliable data:<\/strong><\/p>\n\n\n\n<p>Adequate and correct data on production and cost data relating to crops, fisheries, animal husbandry, forestry, construction workers, small enterprises etc., are not available in a developing country. Besides this, data on unearned incomes, consumption and investment expenditure of rural and urban population are also not available. This does not reveal the actual size of national income.<\/p>\n\n\n\n<p><strong>4) Depreciation:<\/strong><\/p>\n\n\n\n<p>Depreciation refers to wear and tear of capital assets, due to their use in the process of production. There are no uniform, common or accepted standard rates of depreciation applicable to the various capital assets. Thus, it is difficult to make correct deductions for depreciation.<\/p>\n\n\n\n<p><strong>5) Capital gains or losses:<\/strong><\/p>\n\n\n\n<p>Capital gains or capital losses, which accrue to the property owners by increase or decrease in the market value of their capital assets or changes in demand, are not included in the national income because these changes do not result from current economic activities.<\/p>\n\n\n\n<p><strong>6) Illiteracy and ignorance:<\/strong><\/p>\n\n\n\n<p>Due to ignorance and illiteracy, small producers do not keep an account of their production. So they cannot give information about the quantity or value of their output.<\/p>\n\n\n\n<p><strong>7) Difficulties in the classification of working population:<\/strong><\/p>\n\n\n\n<p>In India, working population is not clearly defined. For instance, farmers in India are not engaged in agriculture round the year. Obviously, in the off season, they engage themselves in alternative occupations. In such a case, it is very difficult to identify their income from a particular occupation.<\/p>\n\n\n\n<p><strong>8) Valuation of inventories:<\/strong><\/p>\n\n\n\n<p>Raw materials, intermediate goods, semi-finished and finished products in the stock of the producers are known as inventories. Any mistake in measuring the value of inventory will distort the value of the final production of the producer. Therefore, the valuation of inventories requires careful assessment.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>2) Explain the income method and expenditure method of measuring national income.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong> The total income of the nation is called national income. In real terms, national income is the flow<br>of goods and services produced in an economy during a year.<\/p>\n\n\n\n<p><strong>Methods of Measurement of National Income :<\/strong><\/p>\n\n\n\n<p>There are three methods of measuring national income.<br>1) Output Method\/Product Method<br>2) Income Method<br>3) Expenditure Method<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>1) Income Method:<\/strong><\/p>\n\n\n\n<p>a) This method of measuring national income is also known as factor cost method. This method estimates national income from the distribution side. <\/p>\n\n\n\n<p>b) According to this method, the income payments received by all citizens of a country, in a particular year, are added up, that is, incomes that accrue to all factors of production by way of rents, wages, interest and profits are  all added together, but income received in the form of transfer payments are ignored. <\/p>\n\n\n\n<p>c) The data about income are obtained from different sources, for instance, from income tax returns, reports, books of accounts, as well as estimates for small income.<\/p>\n\n\n\n<p>d) GNP can be treated as the sum of factor incomes, earned as a result of undertaking economic activity, on the part of resource owners and reflected in the production of the total output of goods and services during any given time period.<\/p>\n\n\n\n<p>e) Thus, GNP, according to income method, is calculated as follows:<br>NI = Rent + Wages + Interest + Profit + Mixed Income + Net income from abroad.<br><strong>NI = R + W + I + P + MI + (X\u2013M)<\/strong><\/p>\n\n\n\n<p>f) In India, the National Income Committee of the Central Statistical Organization, uses the income method for adding up the income arising from trade, transport, professional and liberal arts, public administration and domestic services.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>2) Expenditure Method:<\/strong><\/p>\n\n\n\n<p>a) This method of measuring national income is also known as Outlay Method.<\/p>\n\n\n\n<p>b) According to this method, the total expenditure incurred by the society, in a particular year, is added together. Income can be spent either on consumer goods or on capital goods. <\/p>\n\n\n\n<p>c) Thus, we can get national income by summing up all consumption expenditure and investment expenditure made by all individuals, firms as well as the government of a country during a year.<\/p>\n\n\n\n<p>d) Gross national product is found by adding up<br>NI = C + I + G + (X\u2013M) + (R\u2013P)<\/p>\n\n\n\n<p><strong>i) Private Final Consumption Expenditure (C): <\/strong><\/p>\n\n\n\n<p>Private Final Consumption Expenditure (C) by households on non-durable goods, such as food, which are used immediately; expenditure on durable goods such as cars, computers, television sets, washing machines, etc., which are generally used for a longer period; and expenditure on services like transport services, medical services, etc.<\/p>\n\n\n\n<p><strong>ii) Gross Domestic Private Investment Expenditure (I): <\/strong><\/p>\n\n\n\n<p>It refers to expenditure made by private businesses on replacement, renewals and new investment (I).<\/p>\n\n\n\n<p><strong>iii) Government Final Consumption and Investment Expenditure (G):<\/strong><\/p>\n\n\n\n<p>a) The government&#8217;s final consumption expenditure refers to the expenditure incurred by government on various<br>administrative services like law and order, defence, education, health, etc.<br>b) Government&#8217;s investment expenditure refers to the expenditure incurred by government, on creating infrastructural facilities like construction of roads, railways, bridges, dams, and canals, which are used by the<br>business sector for production of goods and services in any economy (G).<\/p>\n\n\n\n<p><strong>iv) Net Foreign Investment\/Net Exports:<\/strong><\/p>\n\n\n\n<p>It refers to the difference between a country&#8217;s exports and imports during one year.<\/p>\n\n\n\n<p><strong>v) Net Receipts (R-P):<\/strong><\/p>\n\n\n\n<p>The difference between expenditure incurred by foreigners on domestic goods and services (R) and expenditure incurred abroad by residents on foreign goods and services (P).<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Extra_Questions\"><\/span>Extra Questions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Answer the following questions.<\/strong><\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">1) Explain the Concept of Balance of payments.<\/span><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br>a) The Balance of payments of a country is a systematic record of all international economic transactions of that country during a given period, usually a year.<br>b) According to Ellsworth, \u201cBalance of payments is a summary statement of all the transactions between the residents of one country and the rest of the world.<\/p>\n\n\n\n<p>c) According to Walter Krause, \u201cThe balance of payments of a country is a systematic record of all economic transactions completed between its residents and the rest of the world during a given period of time usually a concept of the year.<br>d) From the above definitions, it is clear that the value of exchange of goods and services among the citizens, businessmen, firms, government, etc. is included in balance of payments<\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">2) Explain Balance of Trade.<\/span><\/strong><\/p>\n\n\n\n<p><strong>Answer: <\/strong><br>a) Balance of trade is the difference between the value of a country\u2019s exports and imports for a given period. <br>b) Balance of trade is also referred to as the international trade balance.<br>c) According to Bentham,\u201cBalance of trade of a country is the relation over a period between the values of her exports and imports of physical goods.\u201d<\/p>\n\n\n\n<p>d) According to Samuelson, \u201cif the export value is greater than the import value it is called as trade surplus and if import value is greater than export value, then it is called as trade deficit.\u201d<br>e) It is clear from the above definitions that balance of trade includes the value of imports and exports of visible goods and invisible goods.<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" target=\"_blank\" rel=\"noreferrer noopener\">Solution of other subjects<\/a><br><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-textbook-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-textbook-solutions\/\">Solution of all Chapters of Economics<br><\/a> <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-economics-chapter-1\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-economics-chapter-1\/\" target=\"_blank\" rel=\"noreferrer noopener\">1<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-2\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-2\/\">2<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-3a\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-3a\/\" target=\"_blank\" rel=\"noreferrer noopener\">3A<\/a> &#8211; <strong><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-3b\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-3b\/\">3B<\/a> &#8211;<\/strong> <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-4-exercise\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-4-exercise\/\" target=\"_blank\" rel=\"noreferrer noopener\">4<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-5-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-5-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">5<\/a><\/strong> <strong>&#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-6-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-6-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">6<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-7-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-7-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">7<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-8-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-8-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">8<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-9-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-9-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">9<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-10-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-10-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">10<\/a><\/strong><\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\">\n<h3 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"Solution_of_all_Chapters_of_Economics\"><\/span>Solution of all Chapters of Economics<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Chapter Name <\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Solution Link<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">1) Introduction to Micro and Macro Economics<\/td><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-economics-chapter-1\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-economics-chapter-1\/\" rel=\"noreferrer noopener\">Click Here<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">2) Utility Analysis<\/td><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-2\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-2\/\" rel=\"noreferrer noopener\">Click Here<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">3A) Demand Analysis<\/td><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-3a\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-3a\/\" rel=\"noreferrer noopener\">Click Here<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">3B) Elasticity of Demand<\/td><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-3b\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-3b\/\" rel=\"noreferrer noopener\">Click Here<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">4) Supply Analysis<\/td><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-4-exercise\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-4-exercise\/\" rel=\"noreferrer noopener\">Click Here<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">5) Forms of Market<\/td><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-5-solutions\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-5-solutions\/\" rel=\"noreferrer noopener\">Click Here<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">6) Index Numbers<\/td><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-6-solutions\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-6-solutions\/\" rel=\"noreferrer noopener\">Click Here<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">7) National Income<\/td><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-7-solutions\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-7-solutions\/\" rel=\"noreferrer noopener\">Click Here<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">8) Public Finance in India<\/td><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-8-solutions\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-8-solutions\/\" rel=\"noreferrer noopener\">Click Here<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">9) Money Market and Capital Market in India<\/td><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-9-solutions\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-9-solutions\/\" rel=\"noreferrer noopener\">Click Here<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">10) Foreign Trade of India<\/td><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-10-solutions\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-economics-chapter-10-solutions\/\" rel=\"noreferrer noopener\">Click Here<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n<\/div>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"Check_out_other_posts_related_to_the_12th_Commerce\"><\/span>Check out other posts related to the 12th Commerce<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Textbook Solutions of 12th Commerce (All Subjects)<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" rel=\"noreferrer noopener\">Click Here<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong> Free pdf of 12th Commerce Textbooks <\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/ebalbharti-12th-books-pdf\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/ebalbharti-12th-books-pdf\/\" rel=\"noreferrer noopener\">Click Here<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>12th Commerce IT MCQ Preparation (Online Test)<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/hsc-it-online-exam\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/online-mcq-test-of-it-for-class-12-commerce\/\" rel=\"noreferrer noopener\">Click Here<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>12th Commerce Paper Pattern and Chapter Wise Marks Distribution<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/new-paper-pattern-of-12th-commerce\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/new-paper-pattern-of-12th-commerce\/\" rel=\"noreferrer noopener\">Click Here<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Sample Paper of 12th Commerce for Practice<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/sample-question-paper-for-12th-commerce\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/sample-question-paper-for-12th-commerce\/\" rel=\"noreferrer noopener\">Click Here<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Solved Sample papers of 12th Commerce to improve Paper Presentation<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-navneet-practice-papers-pdf\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-navneet-practice-papers-pdf\/\" rel=\"noreferrer noopener\">Click Here<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Old Question Papers of 12th Commerce with solution (All Subjects)<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/hsc-previous-year-question-paper\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/hsc-previous-year-question-paper\/\">Click Here<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":12889,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[5],"tags":[4158],"class_list":["post-12771","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hsc-maharashtra-board","tag-12th-economics-chapter-7-solutions-maharashtra-board"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/12771","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=12771"}],"version-history":[{"count":14,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/12771\/revisions"}],"predecessor-version":[{"id":35858,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/12771\/revisions\/35858"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/12889"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=12771"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=12771"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=12771"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}