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Ans – (a) or (b) Explanation:- Domestic Income is the sum of factor payments earned by residents and non-residents from the domestic territory of India. National Income is the sum of factor payments earned by residents from the domestic territory…

Ans – (a) Explanation:- What is GNP Deflator It is the ratio of Nominal GNP to Real GNP of the Current year. GNP Deflator = Nominal GNP/Real GNP × 100 To eliminate the effect of price changes and to determine…

Ans – (a) Solution:- Real Gross Domestic Product = Nominal Gros Domestic Product/Price Index × 100 Real Gross Domestic Product = ₹ 840/₹ 120 × 100 Real Gross Domestic Product = ₹ 700 Crores

Ans – (d) Explanation:- Following are the components of profit Profit = Corporate Tax + Dividend + Undistributed Profit

Ans – (c) Explanation:- Externalities: Externalities refer to benefits or harms of an activity caused by a firm or an individual, for which they are not paid or penalised. Externalities are either positive or negative. Positive Externalities:- Activities that result…

Ans – (d) Change in inventory investment is also known as change in stock. It has three components Change in stock of Raw Material Change in stock of Semi-finished Goods Change in stock of Finished Goods

Ans – (d) Explanation:- Gross Domestic Capital Formation is the addition to the current stock of capital during a year. It includes investment in fixed assets and inventory without considering depreciation. Thus, it can be represented with the following formulas:…

Ans – (c) Solution:- National Income = Domestic Income + Factor income from abroad – Factor income to abroad National Income = ₹ 4,700 + ₹ 600 – ₹ 800 National Income = ₹ 4,500 Crores

Ans – (d) Explanation:- GVA at MP = Value of Output – Intermediate Consumption ₹ 7,000 = Value of Output – ₹ 3,000 Value of Output = ₹ 10,000 Crores Sales/Change in stock = 4/1 Sales = 4 (Change in…

Ans – (d) Explanation:- Value Added = Value of Output – Intermediate cost Intermediate Cost = Value Added – Value of Output