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Ans – (d) Explanation:- Is is the final good as it is purchased for investment purposes. It is the capital good as it would be used in the further production.

Ans – (a) Explanation:- A rise in the real national income indicates an increase in the production. An increase in production indicates a rise in employment. The rise in employment increases in income and further standard of living.

Ans – (c) Explanation:- Factor income paid to non-residents within the domestic territory increases the domestic income as Domestic income is the income earned from the domestic territory by both residents and non-residents. Factor income paid to non-residents decreases the…

Ans – (c) Explanation:- National income is the income earned by the residents of a country within the domestic territory and from the rest of the world.

Ans – (b) Explanation:- Services for self-consumption are not included in the national income as the market value can not be estimated due to the non-availability of the date. Such services involve love and affection and it is price-less. A…

Ans – (a) Explanation:- Net factor income from abroad is part of National Income. It is added to the domestic income to get the National Income National Income = Domestic Income + Net Factor income from abroad Compensation of employees,…

Ans – (c) Explanation:- Income earned by a factor of production is entirely expended on purchasing the goods and services produced by the firm. This is the phase where income earned is disposed of. The expenditure is also called the…

Ans – (c) Explanation:- Value of output = Sales + Change in stock If the whole quantity is sold, the change in the stock is zero Value of Output = Sales Value added = Value of Output – Intermediate Consumption…

Ans – (b) Explanation:- It is the formula to calculate Real GDP is Nominal GDP and the price index is given. Real GDP = Nominal GDP/Price Index × 100

Ans – (c) Explanation:- Value added = Value of Output – Intermediate Cost