Class 12th Economic exam quick revision
.............UNIT 1 :- NATIONAL INCOME...........
(Hindi + English)
परिचय | Introduction
National Income Accounting (“राष्ट्रीय आय लेखांकन”) Class 12 Macroeconomics का अत्यंत महत्वपूर्ण chapter है, जो न सिर्फ theoretical clarity देता है बल्कि boards और competitive exams—दोनों के हिसाब से scoring भी है। इस नोट में आपको हर जरूरी point मिलेगा: सभी formulas, मुख्य conceptual differences, circular flow diagrams, जल्दी revise करने वाले key points, और extra practical examples. पूरा content एकदम copyright-safe, original language में bilingual (Hindi + English) है, जिससे हर Hindi medium या bilingual learner को फायदा हो।
1. मुख्य सूत्र (Important Formulas) | Key National Income Accounting Formulas
National Income and Related Aggregates
- Gross Domestic Product at Market Price (GDP_MP): [ GDP_{MP} = \sum(Value\ added\ by\ all\ producing\ units\ within\ domestic\ territory) + Indirect\ Taxes - Subsidies ]
- Gross Domestic Product at Factor Cost (GDP_FC): [ GDP_{FC} = GDP_{MP} - Net\ Indirect\ Taxes ] जहाँ, [ Net\ Indirect\ Taxes = Indirect\ Taxes - Subsidies ]
- Net Domestic Product at Market Price (NDP_MP): [ NDP_{MP} = GDP_{MP} - Depreciation ]
- Net Domestic Product at Factor Cost (NDP_FC) / Domestic Income: [ NDP_{FC} = GDP_{MP} - Net\ Indirect\ Taxes - Depreciation ]
- Gross National Product at Market Price (GNP_MP): [ GNP_{MP} = GDP_{MP} + Net\ Factor\ Income\ from\ Abroad\ (NFIA) ]
- Net National Product at Market Price (NNP_MP): [ NNP_{MP} = GNP_{MP} - Depreciation ]
- Net National Product at Factor Cost (NNP_FC): [राष्ट्रीय आय] [ NNP_{FC} = NNP_{MP} - Net\ Indirect\ Taxes ] या, [ NNP_{FC} = NDP_{FC} + NFIA ]
Economic Aggregates Shortcut Table (English + Hindi):
| Aggregate | Formula (English & Hindi Mix) |
| GDP_MP | ∑ Value Added in Domestic Territory at Market Price |
| GDP_FC | GDP_MP – (Indirect Taxes – Subsidies) |
| NDP_MP | GDP_MP – Depreciation |
| NDP_FC (Domestic Income) | GDP_MP – (Indirect Taxes – Subsidies) – Depreciation |
| GNP_MP | GDP_MP + Net Factor Income from Abroad (NFIA) |
| NNP_MP | GNP_MP – Depreciation |
| NNP_FC (National Income) | GNP_MP – Depreciation – (Indirect Taxes – Subsidies) |
Factor Income from Abroad/Net Factor Income from Abroad (NFIA) | विदेशी आय का शुद्ध लाभ: [ NFIA = Factor Income\ received\ from\ rest\ of\ world - Factor\ income\ paid\ to\ rest\ of\ world ]
Depreciation | मूल्यह्रास: [ Depreciation = Gross\ Value - Net\ Value ]
GDP by Expenditure Method: [ GDP_{MP} = C + I + G + (X - M) ] जहाँ,
- C = Consumption Expenditure (Consumption)
- I = Investment
- G = Government Expenditure
- X = Exports
- M = Imports
Other Key Formulas:
- Value Added (मूल्य वर्धन): [ Value\ Added = Value\ of\ Output - Intermediate\ Consumption ]
- Personal Income (व्यक्तिगत आय): [ Personal\ Income = National\ Income - Undistributed\ Profits - Corporate\ Tax + Transfer\ Payments ]
- Personal Disposable Income: [ Personal\ Disposable\ Income = Personal\ Income - Personal\ Taxes ]
- GDP Deflator: [ GDP\ Deflator = \frac{Nominal\ GDP}{Real\ GDP} \times 100 ]
- Real GDP (at Constant Prices): [ Real\ GDP = \frac{Nominal\ GDP}{Price\ Index} \times 100 ]
Quick Application Example:
Suppose, GDP_MP = ₹2,000 crore, Depreciation = ₹200 crore, Indirect Taxes = ₹100 crore, Subsidies = ₹20 crore, and NFIA = ₹50 crore
[ GDP_{FC} = 2000 - (100 - 20) = 2000 - 80 = ₹1920\ crore ] [ NDP_{FC} = 1920 - 200 = ₹1720\ crore ] [ NNP_{FC} = 1720 + 50 = ₹1770\ crore ]
2. मुख्य सैद्धांतिक अंतर | Key Conceptual Differences
Comparison Table: Structure and Explanations
| Conceptual Pair | Definition (English) | परिभाषा (Hindi) | Example (English + Hindi) |
| Flow vs Stock | Flow: Measured per unit of time. | Flow: किसी समय अवधि में मापी जाती है | Income (1 year का ₹50,000) — Flow Money in bank on 31st March — Stock |
| Stock: Measured at a point in time. | Stock: एक निश्चित समय पर मापी जाती है | Wealth — Stock, Savings Done in March — Flow | |
| Domestic vs National | Domestic: Income from within the country (territory). | Domestic: देश की सीमाओं के अंदर | TCS earning in India — Domestic; Indian working in US — National |
| National: Income by residents (anywhere). | National: देश के नागरिकों की, कहीं से भी | ||
| Factor Cost vs Market Price | FC: Cost of production factors (excluding taxes, including subsidies). | FC: उत्पादन के कारकों की लागत (कर बाहर, सब्सिडी शामिल) | Cost paid to labour, rent, capital owner (factory price) |
| MP: Final market price (includes taxes, excludes subsidies). | MP: बाजार में बिका मूल्य (कर शामिल) | Price paid by customer in shop (MRP) | |
| Real vs Nominal GDP | Real: Measures output at base year prices (inflation removed). | Real: स्थिर मूल्यों में मापा (महँगाई नहीं) | 2025 output priced at 2011-12 rates |
| Nominal: At current year prices (inflation included). | Nominal: वर्तमान मूल्यों में (महँगाई शामिल) | 2025 output at 2025 prices (=may be inflated) |
Flow vs Stock: Diagnostic Table
| Basis | Flow (प्रवाह) | Stock (स्टॉक) |
| Measurement | Over a period of time | At a specific point in time |
| Nature | Dynamic | Static |
| Unit | Per unit of time (e.g. per year) | Absolute units (₹, pieces, liters etc.) |
| Examples | Income, expenditure, production | Wealth, capital, inventory |
| Interdependence | Flows change stocks | Stocks influence flows |
Flow vs Stock Example ( Practical Connection ):
- Water Tank Analogy: The "level of water" in the tank = stock; "water flowing in and out" = flow. Similarly, your wealth is stock, your salary/income is flow.
Domestic vs National Income:
- Domestic Income (घरेलू आय):
- केवल देश की सीमाओं (territory) के भीतर उत्पादन से कमाई (चाहे विदेशी या भारतीय करें)
- Example: Foreign company operating in India—Domestic Income में गिनेगी
- National Income (राष्ट्रीय आय):
- सिर्फ "Normal Residents" की global earning (within & outside country)
- Formula: National Income = Domestic Income + NFIA (Net Factor Income from Abroad)
- Example: Indian working in UK—their income will count in India's National Income, UK की Domestic Income
Factor Cost (FC) vs Market Price (MP):
- Factor Cost (FC):
- Producers को मिला price (exclusive of taxes, inclusive of subsidies)
- Only wages, rent, profit, interest; No taxes considered
- Formula:
Factor Cost = Market Price – Indirect Taxes + Subsidies
- Market Price (MP):
- Buyers द्वारा दिया गया actual price (includes taxes, excludes subsidies)
- Formula:
Market Price = Factor Cost + Indirect Taxes – Subsidies
नाममात्र GDP (Nominal GDP) vs वास्तविक GDP (Real GDP):
| नंबर | Nominal GDP (नाममात्र GDP) | Real GDP (वास्तविक GDP) |
| 1 | Current year prices | Base year/constant prices |
| 2 | Inflation included | Inflation effect removed |
| 3 | Not apt for real growth | Shows real economic growth |
3. आय का परिपत्र बहाव (Circular Flow of Income) – Complete Explanation
Two Sector Model:
Explanation (English + Hindi)
- तस्वीर में सिर्फ Households और Firms होते हैं।
- Households: Factors of production (Land, Labour, Capital, Entrepreneurship) provide करते हैं।
- Firms: ये factors use करके goods/services बनाते हैं।
- Firms households को factor payments (wages, rent, interest, profit) देते हैं — (outer loop/real flow).
- Households उसी मिलने वाली income से goods/services खरीदते हैं — (inner loop/money flow).
Phases of Circular Flow:
- Production Phase (उत्पादन चरण): Firms factors लेके output बनाते हैं
- Income Phase (आय चरण): Firms households को factor payments देते हैं
- Expenditure Phase (व्यय चरण): Households वही income से goods-services खरीद लेते हैं
Real Flow और Money Flow:
- Real Flow (वस्तु एवं सेवा प्रवाह): वस्तुएं/services का firms से households की ओर flow (कोई पैसा नहीं)
- Money Flow (धन प्रवाह): Factor payments का firms से households की ओर और households से firms को व्यय
Leakage (लीकेज) और Injection (इंजेक्शन):
- Leakage: Income का वो हिस्सा जो circular flow से बाहर चला गया (जैसे Saving, Tax, Imports)
- Injection: जब कुछ अतिरिक्त income circular flow में add होती है (जैसे Investment, Govt Expenditure, Exports)
Circular Flow Model Extensions:
- Three-Sector Model: Govt. का role (collecting taxes, spending)
- Four-Sector Model: Foreign sector का भी असर (Exports/Imports add होते हैं)
Equilibrium Condition (संतुलन स्थिति): [ Total\ Leakages = Total\ Injections ] यानि कि economy तब equilibrium में होती है।
Practical Classroom Example (with Hindi):
- अगर हर महीने आप Rs 10,000 कमा रहे हैं (income — flow), और बैंक में आपके पास 50,000 का balance है (stock), तो circular flow में आपके खर्च, savings—सबका role है।
- अगर आप salary का सारा हिस्सा खर्च कर दें, तो सारे पैसे firms को वापस चले जाते हैं—circular flow पूरा होता रहता है।
4. त्वरित पुनरीक्षण बिंदु (Quick Revision Points)
- National income accounting तीन method से calculate होती है: Product Method (Output, Value Added), Income Method, Expenditure Method. तीनों का अंतिम answer theoretically same होना चाहिए!
- Double Counting Problem: Only "final goods" value include करें, intermediate goods value बार-बार न जोड़ें।
- Gross vs Net: Gross में depreciation (मूल्यह्रास) शामिल है, Net में घटा दिया जाता है।
- Domestic vs National: Domestic—territory based, National—resident status based।
- Factor Cost vs Market Price: Factor cost includes only factor rewards, Market price is what consumer pays.
- NFIA / NFIA: Net Factor Income from Abroad = Factor income earned from rest of world – Factor income paid to rest of world.
- Circular Flow Model: Continuous loop between households and firms; money और goods opposite direction में flow करते हैं।
- Leakup/Injection: Savings, taxes, imports = leakages; Investment, govt expenditure, exports = injections। Equilibrium तभी, जब leakages = injections.
- Real GDP vs Nominal GDP: Real GDP removes inflation effect, Nominal GDP includes it. Growth हमेशा Real GDP से देखना चाहिए।
- Personal Income vs National Income: Transfer payments में फर्क।
- GDP Deflator = (Nominal GDP / Real GDP) × 100
5. Extra Conceptual Clarity: Exam-Oriented Examples
Flow vs Stock Example
- Bank Account Case Study:
- “मेरे बैंक में इस समय ₹40,000 है” – यह stock है,
- “मैं हर महीने ₹8,000 सेविंग्स डालता हूँ” – यह flow है.
Domestic vs National Example
- अगर भारत में कोई जापानी कंपनी है, जो प्रोडक्ट बनाती है—उसकी income domestic aggregate में जाएगी, national aggregate में नहीं।
- अमेरिका में job करने वाला भारतीय—उसकी earning India के national aggregate में आएगी, USA के domestic aggregate में, but USA के national aggregate में नहीं (India के normal resident को count करेंगे).
Factor Cost vs Market Price Example
- Suppose एक factory में मशीन की मैन्युफैक्चरिंग पर ₹20,000 की लागत लगी (wages, raw material, profit etc.; ये factor cost है)।
- सरकार ने उसपर 10% excise duty (₹2,000) लगाया, और ₹500 subsidy दी।
- तो म्यूचुअल market price = 20,000 + 2,000 - 500 = ₹21,500
Real vs Nominal GDP Example (Inflation Impact):
- मान लो 2021 में किसी देश की GDP (current prices) ₹1,00,000 crore थी, 2022 में बढ़ी ₹1,15,000 crore
- लेकिन अगर inflation 15% थी, तो real output में कोई change नहीं हुआ, बस prices बढ़े।
- Real GDP Constant price वाले year के हिसाब से निकाला जाएगा।
Circular Flow Practical Example:
- एक family, biscuit company (FIRM) से biscuit खरीदती है (expenditure)। वही company उन्हीं family members को jobs देती है, salary देती है (factor payment)। दोनों तरफ se transaction flow होता रहता है — यही है circular flow!
6. महत्वपूर्ण सैद्धांतिक अंतर – Table Format (Exam Special)
| Difference | Flow | Stock |
| Time Reference | Over a period of time | At a specific point of time |
| Example | Income per month, water flowing | Wealth on 31st March, water in tank |
| Measurement | Per week, per month, per year | Absolute amount on a given date |
| Aspect | Domestic (घरेलू) | National (राष्ट्रीय) |
| Meaning | Territory में होने वाली production/income | किसी देश के नागरिकों द्वारा global earning |
| Example | Ford India’s earning | Indian doctor in US earning for India’s National Income |
| Basis | Factor Cost (फैक्टर लागत) | Market Price (बाजार मूल्य) |
| Inclusion | Only wages, rent, profit, interest | FC + (Indirect taxes – subsidies) |
| For whom? | For producers | For final customer (MRP) |
| Feature | Real GDP | Nominal GDP |
| Price Basis | Base Year (Inflation removed) | Current Year Prices |
| Economic Analysis | Real Growth | Not real growth |
7. Copyright-Safe Notes Preparation Guidelines
- Original bilingual explanation — no copied/compiled illustrative matter from textbooks/other notes.
- Tables, headings, and formulas constructed for clarity, not simply translated from external PDFs.
- Examples/descriptions paraphrased in Hindi-English, not replicated from any teacher's notes or guidebooks.
- Markdowns, headings, and structuring as per web accessibility and searchability.
- For study websites: Avoid scanning/hosting of copyrighted book scans, stick to explanatory original text/tables/flow.
8. Markdown/Website Formatting Best Practices (for uploading these notes)
- Use proper headings (## and ###), bolding crucial definitions.
- Always keep one blank line before/after a paragraph and heading for readability.
- Unordered lists (bullet points for steps/explanations) – don’t replace paragraphs, use for quick summary only.
- All comparative/definition tables are in valid Markdown format, followed by explanatory paragraph.
- Bold only exclusive/highlighted keywords, not whole blocks.
- Mix language naturally: Headings + technical terms–bilingual, body – explanations bilingual; simple definitions always with Hindi support.
Tips for Hindi + English Mix Academic Notes:
- Headings always bilingual
- Definitions half-line Hindi, half-line English
- Complex sentences — break with Hindi/English translation or parallel phrase
- Mark important terms/phrases in bold
- Avoid block translation; instead, bilingual flow or ‘parallel texts’ approach
9. Exam-Focused Revision Checklist (Ultra-Short)
- GDP, NDP, GNP, NNP — definitions, full forms, formulas
- Stock vs Flow variables — examples + distinction
- Domestic vs National Income — examples, NFIA concept
- Factor Cost vs Market Price — formula and application
- Circular Flow Model — steps, diagram, real vs money flows
- Real vs Nominal GDP — why use Real GDP for growth
- Three Methods of NI Calculation — product, income, expenditure — proper steps
- Personal Income vs Disposable Income — formula
- Double Counting — definition, how to avoid
- Practice: 10 conceptual MCQs + 1 full-length Calculation Problem
10. Sample Numericals – Quick Application
Q.1: Calculate National Income (NNP_FC) from following:
- GDP_MP = ₹5,000 crore
- Depreciation = ₹200 crore
- Indirect Taxes = ₹150 crore, Subsidies = ₹50 crore
- Net Factor Income from Abroad = ₹100 crore
Solution: [ GDP_{FC} = 5000 - (150-50) = 5000 - 100 = ₹4900\ crore ] [ NDP_{FC} = 4900 - 200 = ₹4700\ crore ] [ NNP_{FC} = 4700 + 100 = ₹4800\ crore ]
11. Key Challenges and Limitations (Exam Insight)
- National Income figures only approximate welfare, not actual happiness/satisfaction.
- Non-market activities, black money, environmental degradation — NI में शामिल नहीं होते।
- Price changes/inflation — Nominal GDP को misleading बना सकते हैं (Real GDP चाहिए accurate growth analysis के लिए).
12. FAQs for Quick Doubt Resolution
Q: What is the main conceptual difference between GDP and GNP? A: GDP is production within India’s territory (including foreigners); GNP is income of India’s normal residents (anywhere in the world).
Q: Does depreciation reduce Real GDP? A: No, depreciation separates gross and net values, not real vs nominal. Real GDP is about removing inflation.
Q: Is National Income always measured in current prices? A: No, better to use constant (base) year prices for real growth assessment.
13. Recommended Practice Routine
- First Step: Revise all formulas — try to write their explanations side-by-side in Hindi and English.
- Second: Attempt 3-4 full-length calculation numericals mixing NFIA, FC/MP, Domestic/National.
- Third: For differences (Stock/Flow, FC/MP, etc.) — make your own dual-language summary chart.
- Fourth: Circle Flow Diagram — practice drawing, labeling Real & Money flows; write examples.
- Last Minute: Revise Quick Checklist before exam.
14. Final Notes for Boards + Exams
- सैंपल पेपर में ध्यान देना—MCQ, assertion/reason, and numericals तीनों तरह के questions आते हैं।
- Examiners अक्सर "conceptual difference", formula applicability, और simple calculation mistakes पर focus करते हैं।
- उलझे हुए terms (Gross/Net, FC/MP, Domestic/National)—को clarity से learn करें, tables/short notes revise करें।
- हर formula के साथ units/conceptual base (point in time vs over period) जरूर जोड़ें।
- Repeatedly translate/explain to yourself in both languages for better retention.