Value added by a firm is equal to:
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…
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Which of the following statement is correct? Real GDP = Price index/Nominal GDP × 100
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
Value added means value of:
Ans – (c) Explanation:- Value added = Value of Output – Intermediate Cost
Which one of the following items is excluded in calculating national income?
Ans – (b) Explanation:- Money won in a lottery is a kind of transfer payment and does not add to the current flow of goods and services. Thus it would not be included in the national income.
Which of the following sector comes under the category of tertiary sector?
Ans – (c) Explanation:- Service sectors such as transport, banking and shipping, and communication come under this sector. The tertiary sector provides services to the primary and secondary sectors.
National product at current prices is higher than national product at constant prices during a period of:
Ans – (a) Explanation:- National product at current prices is measured at the current prevailing prices in the market. Whereas, national product at constant prices is measured at the base year price. If, current market price is higher than the…
Gross domestic product at market price is equal to:
Ans – (b) Explanation:- the following formula is justified from the Income method NDP at FC (Domestic Income) = Compensation of employees + Operating Surplus + Mixed Income of self employed GDP at MP derived from NDP at FC after…
Gross domestic capital formation is equal to:
Ans – (c) Explanation:- The following are the formulas of Gross Domestic Capital Formation = Gross Fixed Capital Formation + Change in stock Gross Domestic Capital Formation = Net Fixed Capital Formation + Consumption of fixed capital + Change in…
Net factor income from abroad is taken into account when national income is calculated by:
Ans – (d) Explanation:- All three methods are meant to calculate domestic income. By adding Net Factor income from abroad into it, we get National Income. it would be more clear from following formulas: Value-added Method Formula to Calculate National…
Measurement of national income at constant prices constitute its:
Ans – (b) Explanation:- The measurement of national income at constant prices is called Real National income. It is measured at the constant base year price and changes when the quantity produced changes. As it gives the idea of real…