# CBSE (Central Board of Secondary Education- Board Exam) Class-12 Economics: Questions 172 - 177 of 523

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## Question number: 172

Appeared in Year: 2009

Essay Question▾

### Describe in Detail

Calculate “gross national product at factor cost” from the following data by

(I) Income method, and (ii) Expenditure method.

 - ( Rs. In crores) Private final consumption expenditure 1000 Net domestic capital formation 200 Profits 400 Compensation of employees 800 Rent 250 Government final consumption expenditure 500 Consumption of fixed capital 60 Interest 150 Net current transfers from rest of the world (-) 80 Net factor income from abroad (-) 10 Net exports (-) 20 Net indirect taxes 80

### Explanation

(I) Income method

Gross national product at factor cost =

Profits + Compensation of employees + Rent + Interest + Net factor income from abroad

= 400 + 800 + 250 + 150 + 60 + (-10)

= Rs. 1650 crore

(ii) Expenditure method

Gross national product at factor cost = Private final consumption expenditure +

Net domestic capital formation +

… (26 more words) …

## Question number: 173

» Producer Behaviour and Supply » Supply » Determinants of Supply

Appeared in Year: 2011

### Write in Short

Define money supply.

## Question number: 174

Appeared in Year: 2011

Essay Question▾

### Describe in Detail

Explain the relationship between investment multiplier and marginal propensity to consume.

### Explanation

Investment multiplier involve that any change in investment can cause change in income and output.

Investment multiplier K =

Investment Multiplier shares direct positive relationship with marginal propensity to consume.

The relationship is expressed as follows.

K=

Assume that value of MPC is 0.6 then

K= = 2.5

If val

… (34 more words) …

## Question number: 175

Appeared in Year: 2011

### Write in Short

Define flow variables.

## Question number: 176

Appeared in Year: 2010

True-False▾

### Following Statement is true or false:

When marginal propensity to consume is greater than marginal propensity to save, the value of investment multiplier will be greater than 5.

## Question number: 177

Appeared in Year: 2011