Economics (030) Class Xii (2014-15) Worksheet Page 7

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b)
The income level at which APS is negative
For blind candidates:
Explain the process of working of the 'investment multiplier' with the help of a
numerical example.
28. a) What is meant by Cash reserve ratio? How does it increase the money supply in
the economy?
(3+3)
b) What is meant by Open market operation? How does it reduce the money supply
in the economy?
29. Find (a) National Income and (b) Gross National Disposable Income.
(6)
Rs Crore
i. Net current transfer from abroad
5
ii. Private final consumption expenditure
200
iii. Subsidies
20
iv. Net domestic fixed capital formation
40
v. Net factor income to abroad
10
vi. Government final consumption expenditure
50
vii. Change in stock
(-)10
viii. Net imports
(-)20
ix. Consumption of fixed capital
30
x. Indirect tax
60
xi. Exports
100
OR
Find (a) Private Income and (b) National Income.
i.
Personal disposable income
350
ii.
Income from property and entrepreneurship
50
accruing to the government administrative departments
7

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