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

12th Class Principles of Economics
Chapter 1

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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

Define National income int he word of Prof. Pigou.

Ans 1: National Income is that part of material wealth of a nation whihc cna be measured by the scale of money

Question # 2

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 # 3

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 # 4

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 # 5

Differentiate between personal income and disposable personal income

Ans 1: Personal income is the income which a person individual earns in a years . After subtracting direct taxes from personal income. disposble personal income is obtained.

Question # 6

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 # 7

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 # 8

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 # 9

Write precautions of the product method to measure national Income.

Ans 1: 1- Avoid double counting. 2- Subtract depreciation allowance.
Ans 2: 3- Subtract indirect taxes.
4- Value of free services should not be counted.
Ans 3: 5- Subsidies should be counted.

Question # 10

What is Saving Function.

Ans 1: Saving is that part of income whihc is not spent on consumer gods. It is found by subtracting consumption expenditures from income. It means.
Ans 2: S= Y - C

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

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

Question # 1

Define National income int he word of Prof. Pigou.

Ans 1: National Income is that part of material wealth of a nation whihc cna be measured by the scale of money

Question # 2

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 # 3

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 # 4

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 # 5

Differentiate between personal income and disposable personal income

Ans 1: Personal income is the income which a person individual earns in a years . After subtracting direct taxes from personal income. disposble personal income is obtained.

Question # 6

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 # 7

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 # 8

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 # 9

Write precautions of the product method to measure national Income.

Ans 1: 1- Avoid double counting. 2- Subtract depreciation allowance.
Ans 2: 3- Subtract indirect taxes.
4- Value of free services should not be counted.
Ans 3: 5- Subsidies should be counted.

Question # 10

What is Saving Function.

Ans 1: Saving is that part of income whihc is not spent on consumer gods. It is found by subtracting consumption expenditures from income. It means.
Ans 2: S= Y - C

Submit

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

Question # 1

What is Saving Function.

Ans 1: Saving is that part of income whihc is not spent on consumer gods. It is found by subtracting consumption expenditures from income. It means.
Ans 2: S= Y - C

Question # 2

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 # 3

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 # 4

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 # 5

Write precautions of the product method to measure national Income.

Ans 1: 1- Avoid double counting. 2- Subtract depreciation allowance.
Ans 2: 3- Subtract indirect taxes.
4- Value of free services should not be counted.
Ans 3: 5- Subsidies should be counted.

Question # 6

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 # 7

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 # 8

Define National Income in the words of Prof Paul A Samullson.

Ans 1: It is the loose name we give for the money measure of the over all annual flow of goods and services in an economy.

Question # 9

Define National income int he word of Prof. Pigou.

Ans 1: National Income is that part of material wealth of a nation whihc cna be measured by the scale of money

Question # 10

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

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

Question # 1

Differentiate between personal income and disposable personal income

Ans 1: Personal income is the income which a person individual earns in a years . After subtracting direct taxes from personal income. disposble personal income is obtained.

Question # 2

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 # 3

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 # 4

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 # 5

Write five factors of national income.

Ans 1: 1 National resoruces
Ans 2: 2- Man made resources
Ans 3: 3- Human resoruces
Ans 4: 4- Capital goods
Ans 5: 5- Technicla known how

Question # 6

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 # 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 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 # 9

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 # 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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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

Define National income int he word of Prof. Pigou.

Expoain the concept of Disposable personal income.

Explain the concept of personal income.

What is meant by Marginal propensity to save.

Differentiate between personal income and disposable personal income

What is meant by Average propensity to consume.

What is the various concept of national income.

Write four points of importance of study of national income.

Write precautions of the product method to measure national Income.

What is Saving Function.

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

Define National income int he word of Prof. Pigou.

Expoain the concept of Disposable personal income.

Explain the concept of personal income.

What is meant by Marginal propensity to save.

Differentiate between personal income and disposable personal income

What is meant by Average propensity to consume.

What is the various concept of national income.

Write four points of importance of study of national income.

Write precautions of the product method to measure national Income.

What is Saving Function.

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

What is Saving Function.

What is the various concept of national income.

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

Who did present the concept of equilibrium level of National income

Write precautions of the product method to measure national Income.

What is meant by average propensity to save.

Explain the concept of National Income.

Define National Income in the words of Prof Paul A Samullson.

Define National income int he word of Prof. Pigou.

Explain the meanings of Goss Domestic Product.

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

Differentiate between personal income and disposable personal income

What is the various concept of national income.

What is meant by average propensity to save.

What is meant by Depreciation allowance.

Write five factors of national income.

Expoain the concept of Disposable personal income.

Defien Goss National product.

What is meant by Marginal propensity to save.

What is meant by Average propensity to consume.

When does national income increase.

12th Principles of Economics Chapter 1 Preparation

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12th Class Principles of Economics
Chapter 1