I.Com Part 2 Principles of Economics chapter 1 Short Question Preparation

12th Class Principles of Economics
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12th Class Principles of Economics Chapter Wise Preparation

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Economics - ICom Part 2 Principles of Economics Chapter 1 Short Questions Preparation

Question # 1

Write precautions of income method to measure national income.

Ans 1: 1- Earnings from unfair means should not be conted in national income.
Ans 2: 2- Transfer payments should not be included

Question # 2

Define National Income in the words of Prof. Fisher.

Ans 1: Quantity of goods and services which is consumed during a year is called national income.

Question # 3

Define National Income in the word of Prof. Marshall.

Ans 1: Individuals if a country produce a certain quantity of goods and services using the resoruces fo the coutnry with the help of their capital. It is caleld national income.

Question # 4

Explain meanings of Net National product.

Ans 1: If we subtract depreciation allowance or repalcement cost of machines from gross national product , we get net national product.
Ans 2: Net National product= Goss nationalproduct= Depreciation allowance.

Question # 5

Explain the concept of personal income.

Ans 1: It is the income whihc a person individually earns in a year. For example a layer earn 10 lace in a year, it is his personal income , Transfer payments and indirect taxes are included in personal income.

Question # 6

What is meant by Marginal propensity to consume.

Ans 1: Marginal propensity to consume
Ans 2: The ratio between change in consumption and change in income is called marginal propensity to consume. To find Marginal propensity to consume. change in consumption is divided by the chang in income.

Question # 7

Defien Goss National product.

Ans 1: Goss National induct of a country is the totla market value of all final goods and services produced during a period of one year. All agricultural goods, industries goods, mineral goods and services of individuals, government and semi government institutions are included in it.

Question # 8

What is meant by average propensity to save.

Ans 1: The ratio between saving and income is called avberage propensity to save. To find average propensity to save, saving is divided by income.
Ans 2: APS = S/Y

Question # 9

What is subsidy

Ans 1: Sometimes governemnt wants to provide some goods to the public at a lower price than market price. The governemnt purchases them at higher price and sells at a low price to the public at utility stores and cooperative stores. It is called Subsidy, for example, if government purchases flour at Rs. 10/- per kg and sells it at Rs. 8/- per kg, than subsidy will be Rs. 2/- per kg.

Question # 10

When does national income increase.

Ans 1: National income increases when the quantity of goods and services is increasing in the country.

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ICom Part 2 Principles of Economics Chapter 1 Short Questions Preparation - Set 1

Question # 1

Write precautions of income method to measure national income.

Ans 1: 1- Earnings from unfair means should not be conted in national income.
Ans 2: 2- Transfer payments should not be included

Question # 2

Define National Income in the words of Prof. Fisher.

Ans 1: Quantity of goods and services which is consumed during a year is called national income.

Question # 3

Define National Income in the word of Prof. Marshall.

Ans 1: Individuals if a country produce a certain quantity of goods and services using the resoruces fo the coutnry with the help of their capital. It is caleld national income.

Question # 4

Explain meanings of Net National product.

Ans 1: If we subtract depreciation allowance or repalcement cost of machines from gross national product , we get net national product.
Ans 2: Net National product= Goss nationalproduct= Depreciation allowance.

Question # 5

Explain the concept of personal income.

Ans 1: It is the income whihc a person individually earns in a year. For example a layer earn 10 lace in a year, it is his personal income , Transfer payments and indirect taxes are included in personal income.

Question # 6

What is meant by Marginal propensity to consume.

Ans 1: Marginal propensity to consume
Ans 2: The ratio between change in consumption and change in income is called marginal propensity to consume. To find Marginal propensity to consume. change in consumption is divided by the chang in income.

Question # 7

Defien Goss National product.

Ans 1: Goss National induct of a country is the totla market value of all final goods and services produced during a period of one year. All agricultural goods, industries goods, mineral goods and services of individuals, government and semi government institutions are included in it.

Question # 8

What is meant by average propensity to save.

Ans 1: The ratio between saving and income is called avberage propensity to save. To find average propensity to save, saving is divided by income.
Ans 2: APS = S/Y

Question # 9

What is subsidy

Ans 1: Sometimes governemnt wants to provide some goods to the public at a lower price than market price. The governemnt purchases them at higher price and sells at a low price to the public at utility stores and cooperative stores. It is called Subsidy, for example, if government purchases flour at Rs. 10/- per kg and sells it at Rs. 8/- per kg, than subsidy will be Rs. 2/- per kg.

Question # 10

When does national income increase.

Ans 1: National income increases when the quantity of goods and services is increasing in the country.

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ICom Part 2 Principles of Economics Chapter 1 Short Questions Preparation - Set 2

Question # 1

Define National Income in the words of Prof. Fisher.

Ans 1: Quantity of goods and services which is consumed during a year is called national income.

Question # 2

Explain meanings of Net National product.

Ans 1: If we subtract depreciation allowance or repalcement cost of machines from gross national product , we get net national product.
Ans 2: Net National product= Goss nationalproduct= Depreciation allowance.

Question # 3

Explain the concept of National Income.

Ans 1: If indirect taxes are subtractedfrom Net National product and subsidies are added in N.N.P get National income. It is the income which is the aggregate of net rewards of four fctors of production e.g. rents + wages+ intrest + profits
Ans 2: National income = Net natinal product - indriect taxes + Subsidies

Question # 4

What is the various concept of national income.

Ans 1: 1- Goss National product
Ans 2: 2- Net National product 3- Goss Domestic product
Ans 3: 4- National income 5- Personal Income 6- Per Capita income
Ans 4: 7- Disposable personal income

Question # 5

Define National Income in the words of Prof. Ackley Gardner.

Ans 1: Individual incomeis the amount of his earning from the productive services currently rendered by him or by his property National income is nothing more than the sum of all the individual incomes.

Question # 6

Explain the meanings of Goss Domestic Product.

Ans 1: Total Market value of allfinal goods and services produced within a country druing a year is caleld gross domestic product. thus when we substract foreign income from gross national product. We get gross domestic product. G.DP = G.N.P.F.I

Question # 7

Difference between real national income and nominal national income.

Ans 1: Real national income menas total quantity of goods and services produced in a country. Therefore, real national incmoe increases with the increasses in the quantity of goods and services in the country while nominal national income means monetary value of goods and services at the market prices.

Question # 8

Write precautions of income method to measure national income.

Ans 1: 1- Earnings from unfair means should not be conted in national income.
Ans 2: 2- Transfer payments should not be included

Question # 9

Who did present the concept of equilibrium level of National income

Ans 1: Prof. J.M.Keynes presented the concept of equilibrium level of national income in 1936 in his famous book. " General theory of employment,interest and money".

Question # 10

What is meant by Average propensity to consume.

Ans 1: 1- Average propensity to consume
Ans 2: The ratio between consumption and income is called average propensity to consume. To find average propensity to consume consumption is divided by income average propensity to consume= Comsumption/income

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ICom Part 2 Principles of Economics Chapter 1 Short Questions Preparation - Set 3

Question # 1

What is meant by trasfer payments.

Ans 1: Transfer payments are the amoutns of money which a person gets without labour These are donations, alms pension, unemployment allowance, scholar shp and gifts etc.

Question # 2

What is menat by circular flow if national income.

Ans 1: Circulation of national income between households and firms is called circular flow of national income.

Question # 3

What is subsidy

Ans 1: Sometimes governemnt wants to provide some goods to the public at a lower price than market price. The governemnt purchases them at higher price and sells at a low price to the public at utility stores and cooperative stores. It is called Subsidy, for example, if government purchases flour at Rs. 10/- per kg and sells it at Rs. 8/- per kg, than subsidy will be Rs. 2/- per kg.

Question # 4

Write four points of importance of study of national income.

Ans 1: 1- Helps to analyse the economic conditions.
Ans 2: 2- Helps to examine the economic growth rate of the country.
Ans 3: 3- Helps to analyse the economic problems
Ans 4: 4- Helps in framing economic policies

Question # 5

What is meant by Depreciation allowance.

Ans 1: We use machines and tools tool to manufacture goods.These machines oftern break down during the year owing to wear and tear. We have to repair these machines. The expenditures made on their repair are called depreciation allownce.

Question # 6

What is meant by Marginal propensity to save.

Ans 1: The ratio between change in saving and chang in iicome is called marginal propensity to save. To find marginal propensity to save change in saving is divided by the chang in income. It means.
Ans 2: Marginal propensity to save = chang in saving / Change iincome

Question # 7

What is meant by Average propensity to consume.

Ans 1: 1- Average propensity to consume
Ans 2: The ratio between consumption and income is called average propensity to consume. To find average propensity to consume consumption is divided by income average propensity to consume= Comsumption/income

Question # 8

Expoain the concept of Disposable personal income.

Ans 1: The income i the possession of an indivudual after the payment of direct taxes is called disposable personal income. It is at the disposal of the person and he can spend it accordingto his own free will.
Ans 2: Disposable personal income = personal income- Direct taxes

Question # 9

What is meant by average propensity to save.

Ans 1: The ratio between saving and income is called avberage propensity to save. To find average propensity to save, saving is divided by income.
Ans 2: APS = S/Y

Question # 10

Explain the concept of personal income.

Ans 1: It is the income whihc a person individually earns in a year. For example a layer earn 10 lace in a year, it is his personal income , Transfer payments and indirect taxes are included in personal income.

Submit

12th Principles of Economics Chapter 1 Preparation

Short Questions
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I.Com Part 2 Principles of Economics chapter 1 Short Question Preparation

12th Class Principles of EconomicsChapter 1

12th Class Principles of Economics Chapter Wise Preparation

Online Short Questions For Chapter 1 "ICom Part 2 Principles of Economics Chapter 1 Short Questions Preparation "

Economics - ICom Part 2 Principles of Economics Chapter 1 Short Questions Preparation

Write precautions of income method to measure national income.

Define National Income in the words of Prof. Fisher.

Define National Income in the word of Prof. Marshall.

Explain meanings of Net National product.

Explain the concept of personal income.

What is meant by Marginal propensity to consume.

Defien Goss National product.

What is meant by average propensity to save.

What is subsidy

When does national income increase.

Prepare Complete Set Wise Questions For Chapter 1 "ICom Part 2 Principles of Economics Chapter 1 Short Questions Preparation "

Set 1

Set 2

Set 3

ICom Part 2 Principles of Economics Chapter 1 Short Questions Preparation - Set 1

Write precautions of income method to measure national income.

Define National Income in the words of Prof. Fisher.

Define National Income in the word of Prof. Marshall.

Explain meanings of Net National product.

Explain the concept of personal income.

What is meant by Marginal propensity to consume.

Defien Goss National product.

What is meant by average propensity to save.

What is subsidy

When does national income increase.

ICom Part 2 Principles of Economics Chapter 1 Short Questions Preparation - Set 2

Define National Income in the words of Prof. Fisher.

Explain meanings of Net National product.

Explain the concept of National Income.

What is the various concept of national income.

Define National Income in the words of Prof. Ackley Gardner.

Explain the meanings of Goss Domestic Product.

Difference between real national income and nominal national income.

Write precautions of income method to measure national income.

Who did present the concept of equilibrium level of National income

What is meant by Average propensity to consume.

ICom Part 2 Principles of Economics Chapter 1 Short Questions Preparation - Set 3

What is meant by trasfer payments.

What is menat by circular flow if national income.

What is subsidy

Write four points of importance of study of national income.

What is meant by Depreciation allowance.

What is meant by Marginal propensity to save.

What is meant by Average propensity to consume.

Expoain the concept of Disposable personal income.

What is meant by average propensity to save.

Explain the concept of personal income.

12th Principles of Economics Chapter 1 Preparation

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12th Class Principles of Economics
Chapter 1