Ans: No, it is not necessary that machine purchased is a final good. Wheat used by the flour mill. Give an example of a person who is staying abroad for a period more than one year and still he is treated as normal resident of India. Explain the basis of classifying goods into intermediate and final goods. Ans: Capital transfers are defined as transfers in cash and in kind for the purpose of investment to recipient made out of the wealth or saving of a donor. Expenditure on maintenance by a firm. For example, Indian Embassy in Russia is a part of the domestic territory of India. Reason: End user is consumer. 4. (a) Without any exchange of goods and services. 4. Ans: Intermediate good [CBSE (AI) 2010] Reason: It is a final product as it is used by households for final consumption. CBSE Class-12 Economics Macro Economics Chapter 1 – Introduction Revision Notes Macro Economics: It deals with the aggregate economic variables of an economy. Reason: Saving is flow because it is .measured during a period of time. Ans: False: It depends on the use of bread. Ships and air crafts owned and operated by normal residents between two or more countries. Power Points and Revision Window offer a quick glance of the subject matter. Which one of the following items comes under consumption goods? Ans:Â. Ans: Not a Normal Resident Reason: It is an intermediate product as wheat is used for further production during the same year or is meant for resale. Foreign tourists visiting India for a month to see the Taj Mahal. 7. Reason: Capital is stock because it is measured at a point of time. Reason: It is received without rendering any productive services. Company Accounts and Analysis of Financial Statements, Part A – Fundamentals of Human Geography, PART-2 Politics in India since Independence, PART-B Politics in India since Independence, Class 12 NCERT Solutions Macro Economics Chapter-1 Introduction to Macroeconomics and its Concepts – Free PDF Download. Macroeconomics deals with the problems of a consumer. 24. Ans: Consumer goods Ans: Normal Resident 13. 3. The concept of domestic territory helps to estimate ‘Domestic Product’. Capital formation is a flow. Dos and Don’ts (at the end of each chapter) should serve as a safeguard against misinterpretation of the concepts. National Product includes production activities of normal residents irrespective of fact whether performed within the economic territoiy or outside it. (d) Can be Consumption goods and intermediate goods 6. Production of Wheat Unsold coal with trader at a year end. Washing soaps Can purchase of a new car be categorized as an intermediate good. 15. Indians working in the UNO office, located in America for less than 1 year. (c) Free Play of market forces of demand and supply. A. (a) Durable goods Reason: It is a final product because it is purchased for investment. 1. What are the four factors of production and remunerations to each of these called? February 28, 2020 by CoolGyan Leave a Comment, 2. of production, For example, cars, television sets, bread, furniture, air-conditioners, etc. Reason: As their centre of economic interest lies in the foreign country. Flow of Goods & services and factors of production across different sectors in a barter economy is known as: [CBSE Sample Paper 2016] ‘ [CBSE 2009] Ans: Excluded Fishing vessels, oil and natural gas rigs and floating platforms operated by the residents of a country in the international waters where they have exclusive rights of operation. If a car purchased by a taxi driver as a taxi or if purchased by a firm for use in its business is a capital good. 18. 6. Television is a capital good. Reason: As it is used up while making sweets. Indian employees working in WHO, located in India. 11. Bread and butter used by a consumer household. Exports 7. 16. 9. Money supply If a machine is purchased by a household, then it is a final good. Machinery of a firm 5. Ohri - Google Books The book has been designed topic and subtopic-wise, keeping the students’ needs in mind. Indian Embassy in China Fertilizer used by a farmer. Ans: (d), 7. 6. Indians going to Pakistan for watching the cricket match. 6. Reason: It is related to a period of time. 4. Reason: As it is within the domestic territory of our country. ‘Exercise’ is tuned to the pattern of examination. [ 1 Mark] What is meant by consumption goods? The word macro comes from a Greek word ‘Makros’ which means large. Ans: Intermediate good Resale in the same year (If car purchased by a car dealer for resale). Office of Tata in New York Indian officials working in the Indian Embassy in USA. 7. 6. Edible oil Reason: As it is within the domestic territory of our country. 3. Ans: Capital goods Ans: Final product Ans: (d), 4. 5. Ans: True: Even in case of closed economy, circular flow of income takes place between households and firms. Ans: Intermediate product Books in a library are intermediate goods. Ans: (b), 1. Ans: Factor income 8. Salary received by Pankaj from a company. Reason: It is received without rendering any productive services. 2. Reason: It is a final product as it is used by households for final consumption. Ans: Flow concept 6. National Income of a country- is a stock concept. 11. 8. Reason: As their centre of economic interest lies in the home country. The book has been designed topic and subtopic-wise, keeping the students’ needs in mind. 5. 2. Reason: As their centre of economic interest lies in the home country. C. Giving reasons, classify the following into stock or flow. Reason: As it loose their identity in a single act of consumption. Define capital transfers. 1. (b) Profit is the only motive. 10. Reason: It is an intermediate product as paper is used for further production during the same year. Services of a private doctor purchased by a consumer household. Ans: Flow concept Reason: It is a final product because it is purchased for investment. Microsoft Office in India Expenditure on maintenance of an office building. For example, a car purchased by a household is a final good, whereas, it will be an intermediate good if it is purchased by a car dealer. But it has no longer life. Ans:  Normal Resident Reason: Expenditure on improvement of a machine in a factory is a final expenditure as the machine is repeatedly used for several years as a fixed asset. [CBSE Sample Paper 2010] Ans: True: Because final goods have crossed the production boundary. Give examples. (a) Production (b) Distribution E. Classify the following into durable, non-durable, semi-durable or services Purchase of rice by a grocery shop. Reason: As it is within the domestic territory of our country. Ans: Excluded Reason: End user is consumer. Ans:  Factor income Passenger bus service used by a consumer household. Reason: It is received without rendering any productive services. Reason: As it loose their identity in a single act of consumption. Coal used by manufacturing firms. Ans: Stock concept Foreign Assets Construction of a house 10. Define capital goods. Which of these are final goods? Reason: As it is non-material goods which satisfy the human wants directly. NCERT Solutions for Class 12 Macro Economics Chapter-1 Introduction to Macroeconomics and its Concepts, I.

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