National Income Accounting CBSE Syllabus Class XII (Class 12)

National Income Accounting CBSE Syllabus Class XII (Class 12)

1. Economic Wealth is not mere possession of natural resources

 and how this natural resources are used to produce products &

Services which retain the production flow and create income & wealth

Is created.

2. Intermediate goods are goods which transforms its character to form

another goods.

Ex: farmer produces cotton and sold to spinning mill which

transform into textiles.

4. Final goods are consumption goods and capital goods.

Goods like food, clothing, recreation, etc are goods consumed by

consumer are called consumer goods.

Durable goods like tools, implements, machines which make

production feasible are called capital goods, which

enhance the production function and investment done.

Some commodities like television sets, automobiles, home

Computers, where only wear & tear as replacement of parts, called

Consumer Durables.

5. Final goods & services in the economy

with given period of time used as consumption

goods (durable & non-durable goods) or capital goods

in the economic process.

6. Total production take place with large number

of products don't end in final consumption or capital

goods as material inputs called intermediate goods.

Ex: steel sheets used in auto industry, copper sheet

used to make utensils.

7. Flow variable is defined over a period of time.

Capital goods or consumer  wear out with delineated time

period, till new replacement.

Stocks are working at a particular point of time.

Ex: How