Archives Answers

Ans – (d) Explanation:- Gross Domestic Capital Formation is the addition to the present stock of capital during the year. This investment can be in fixed capital and inventory. Thus it is calculated with the following formulas: Gross Domestic Capital…

Ans – (c) Explanation:- Domestic Income = Compensation of employees + Mixed Income + Rent and royalty + Interest + Profit Domestic Income = Compensation of employees + Income of self-employed + Operating Surplus Here operating surplus is equal to…

Ans – (c) Explanation:- Operating Surplus is the sum of income from property and income from entrepreneurship Income from Property = Rent + Royalty + Interest Income from Entrepreneurship = Profits Operating Surplus = Rent + Royalty + Interest +…

Ans – (b) Explanation:- Value of Output = Sales + Change in Stock When the entire output is sold in an accounting year, the value of change in the stock is zero Change in Stock = ₹ 0 Thus, Value…

Ans – (c) Explanation:- Employee’s contribution to social security schemes is contributed from wages and salaries. It is not contributed separately from employees. Thus if it is added separately, it will lead to double counting. Wages and salaries in cash…

Ans – (d) Explanation:- Bonus to employees is the part of the compensation of employees. It is added to the Domestic Income through Income Method. The Formula is: Domestic Income = Compensation of Employees + Mixed Income + Rent +…

Ans – (b) Explanation:- Net Exports = Exports – Imports Net Exports is the difference between goods exports to the rest of the world and imports from the rest of the world

Ans – (c) Solution:- NNP at FC = NDP at FC – Net Factor Income to Abroad NNP at FC = ₹ 1,500 – ₹ 500 NNP at FC = ₹ 1,000

Ans – (c) Explanation:- Net Exports is the part of Expenditure Method Following is the Formula: GDP at MP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Gross Domestic Capital Formation + Net Exports Rent and Royalty…

Ans – (a) Solution:- Let’s first understand the concept of value added in the production process. Value added refers to the increase in value of the goods that occurs at each stage of production. It is the difference between the…