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socialsciencetutor.blogspot.com | Social Science Tutor, , STD:IX, SOCIAL SCIENCE II, UNIT 3 STUDY NOTE, NATIONAL INCOME, 1.Explain the meaning of National Income., ➢ National income indicates the economic condition of a, country., ➢ A higher national income implies economic progress of a, country., ➢ The total income received by a country in one year is its, national income., ➢ It is the amount earned from the production of goods and, services in a country during a year., ➢ Calculate the money value of goods and services produced in, a country during a particular year, we get the National, Income of the country for that year., 2.Identify the three sectors involved in the calculation of national, income from the given news headlines., , socialsciencetutor.blogspot.com | Social Science Tutor

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socialsciencetutor.blogspot.com | Social Science Tutor, , ➢ Agriculture sector, ➢ Industrial sector, ➢ Service sector, 3.What is the difference between annual income of a family and, the national income of a country?, ➢ The amount of income earned by the members of a family, through different sources during a year is the annual income, of that family. The total income received by a country in one, year is its national income., 4.Why do we calculate national income?, OR, What are the objectives /goals of calculating national income?, ➢ To help in calculating the economic growth of a country, ➢ To compare the economic growth of different countries., ➢ To assess the contribution of different sectors in the economy, ➢ To study the problems faced by the economy, ➢ To help the government in planning and implementing, different projects., ➢ To find out the limitations and advantages of economic, activities like production, consumption, and distribution., 5.Write down the major concepts related to national income., , socialsciencetutor.blogspot.com | Social Science Tutor

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socialsciencetutor.blogspot.com | Social Science Tutor, , ➢ Gross National Product – GNP, ➢ Gross Domestic Product – GDP, ➢ Net National Product – NNP, ➢ Per capita income, 6.What do you mean by Gross National Product – GNP?, ➢ The money value of final goods and service produced is the, gross national product., ➢ The GNP of a country is calculated for a particular financial, year., ➢ In India, a financial year is from 1 April to 31 March., 7.What do you mean by ‘final product’ ?, ➢ The products that are available for consumption are called the, final product., 8.Write short note about Gross Domestic Product – GDP?, ➢ The GDP of a country is the total money value of the final, goods and services produced within the domestic territory, during a financial year., ➢ The income of people working abroad and the profit of, institutions and firms operating abroad will not be included, while calculating the Gross Domestic Product., , socialsciencetutor.blogspot.com | Social Science Tutor

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socialsciencetutor.blogspot.com | Social Science Tutor, , 9.What is termed as depreciation charges.?, ➢ The cost incurred to remedy this wear and tear is termed as, depreciation charges., 10.What is Net National Product – NNP?How will you calculate, it?, ➢ When we deduct depreciation charges from the Gross, National Product we get the Net National Product., ➢ The Net National Product is considered as national income., ➢ Net National Product =Gross National Product - Depreciation, charges., 11.Write short note about Per capita income, ➢ When we divide the national income by population, we get, per capita income., ➢ It helps to know the economic position of a country and to, compare it with other countries., ➢ Per capita income =, , National income, Total population, , 12.What are the three methods for estimating national income?, ➢ Product method, ➢ Income method, ➢ Expenditure method, , socialsciencetutor.blogspot.com | Social Science Tutor

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socialsciencetutor.blogspot.com | Social Science Tutor, , 13.How will you calculate national income by product method?, Write its merits, ➢ The national income is calculated by adding up the money, value of goods and services produced by the primary,, secondary, and tertiary sectors., ➢ Useful for assessing the contribution of each of these sectors, towards the national income., ➢ To analyse which sector contributes the most to national, income., 14.Write two examples for primary,secondary,tertiary sectors, ➢ Primary-Agriculture and allied activities,Fishing, ➢ Secondary-Industries,Construction, ➢ Tertiary-Banking,Business, 15.List out the four factors of production and its rewards, ➢ Land-Rent, ➢ Labour-Wages, ➢ Capital-Interest, ➢ Organisation/Entrepreneurship-Profit, 16.Write the features of income method for estimating national, income?, , socialsciencetutor.blogspot.com | Social Science Tutor

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socialsciencetutor.blogspot.com | Social Science Tutor, , ➢ In income method, national income is calculated based on, rent, wages, interest, and profit, ., ➢ Helpful in analysing the contribution of each factor of, production to the national income., 17.Write short note about Expenditure method., ➢ The expenditure method is used to estimate the national, income by calculating the expenditure incurred by, individuals, firms and government in a particular year., ➢ The summation of consumption expenditure, investment, expenditure and government expenditure, gives the total, expenditure., 18.What is CSO?Write its importance, ➢ The Central Statistical Office (CSO) is the official agency, that estimates the national income of India., ➢ The estimation is done mainly for the purpose of planning, and development activities of the government., ➢ Helps to understand the nature of the employment sectors, and the types of employment the people are engaged in., 19.Write difficulties/limitations in calculating national income of, India., ➢ Lack of reliable statistical data, , socialsciencetutor.blogspot.com | Social Science Tutor

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socialsciencetutor.blogspot.com | Social Science Tutor, , ➢ There is a chance of double counting., ➢ Services of housewives is not included in national income., ➢ The production of goods for self consumption is not included, in the estimation of national income., ➢ Ignorance and illiteracy of the people create problems in, collecting statistical data., ➢ The practical difficulty in assessing the money value of, services., ➢ Consumers seldom maintain records of expenditure incurred, by them., 20. what do you mean by’ double counting’ ?, ➢ Calculating the money value of goods and services more than, once while they pass through different stages of production., 21.Write the factors that helped in the growth of the tertiary sector., ➢ The rise in the establishment of educational institutions and, hospitals, ➢ The advancement in banking, insurance, and, telecommunication, ➢ People are more willing to partake in transport and tourism., ➢ Development of knowledge based industries ., 22.Write a note about the importance of knowledge sector., , socialsciencetutor.blogspot.com | Social Science Tutor

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socialsciencetutor.blogspot.com | Social Science Tutor, , ➢ The knowledge sector is the sector which efficiently uses, knowledge and technology to attain economic growth., ➢ Modern technology and information & communication, possibilities have grown and developed into knowledge, economy., ➢ Education, innovation, and Information & Communication, Technology (ICT) form the basis of knowledge economy., ➢ In knowledge economy, production and consumption of, intellectual capital take place., ➢ Intellectual capital is the collective knowledge of all the, people in an enterprise or a society., 23.The Kerala government gives priority to the development of, the knowledge sector.Write two examples., ➢ Infopark, ➢ Technopark, 24.Point out the favourable factors which can help India grow, further in knowledge sector., ➢ Human resource including technical experts who are well, versed in the English language., ➢ Wide domestic market, ➢ Strong private sector, , socialsciencetutor.blogspot.com | Social Science Tutor

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socialsciencetutor.blogspot.com | Social Science Tutor, , ➢ Development of science and technology, 25.Which among the following is not an important objective in, estimating national income?, a. To study the economic problems, b. To help in formulating government plans, c. To calculate the population of a country, d. To analyse the contribution of different sectors, ➢ c. To calculate the population of a country, 26.Which among the following concepts of national income, considers the domestic territory of a country?, a. GNP, b. GDP, c. Per capita income, d. NNP, ➢ b. GDP, Prepared by, PRIYA B, HST(SS), CSHSS, THRISSUR, [email protected], 9446238385, socialsciencetutor.blogspot.com | Social Science Tutor