The sum of net value added at factor cost of all the producing units of an economy gives:
Ans – (c) Explanation:- the sum of net value added at factor cost of all the producing units is equal to the Net domestic product at factor cost.
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The net value added at factor cost of a producing unit is equal to:
Ans – (a) Explanation:- As savings are assumed to be zero Net value added at factor cost of producing unit is equal to sum of factor payments made to the factors of production.
Change in stock is negative when:
Ans – (b) Explanation:- Change in stock = Closing stock – Opening stock Change in stock is negative when closing is less than the opening stock
Normal residents of India working in an American company in England add to:
Ans – (b) Explanation:- American company in England lies in the domestic territory of England. Income earned from the domestic territory of England by residents and non-residents (Indian) is included in the domestic income of England.
A growing country is one with:
Ans – (a) Explanation:- GNP at the constant prices is calculated at the base year price. It changes only when the quantity produced changes. Increasing production is an indication of the growing country as it generates employment and increases the…
National Income includes:
Ans – (b) Explanation:- National Income includes only factor income that adds to the current flow of goods and services.
Which of the following will be included in National Income?
Ans – (d) Explanation:- (a) The sale of bonds by a company is merely an ownership transfer of financial assets and it does not add to the current flow of goods and services. (b) The transport expenses by a firm…
Piyush’s mother is a teacher. She also teaches Piyush. How would you treat this while calculating national income and domestic income?
Ans – (d) Explanation:- Services provided for self-consumption are neither included in national income nor in domestic income. Piyush’s Mother teaches Piyush are the service for the self-consumption. The market value of services for the self consumption can not be…
National Income can be calculated by 3 methods. By which method, we get the maximum value of National Income?
Ans – (d) Explanation:- National Income can be calculated by 3 methods: Value-added Method Income Method Expenditure Method The value of National Income is the same for all three methods. because these are the three phases of the circular flow…
Broker’s commission on sale and purchase of second hand goods is included in national income because:
Ans – (c) Explanation:- The broker makes the sale and purchase happen by providing his services as a mediator. His services are productive service as it adds to the current flow of goods and services in the economy. Thus, the…