Archives Answers

Ans – (b) Explanation:- Distributed profits is the part of profits that is distributed among shareholders as dividend. Profit has three componenets Profits = Corporate Tax + Dividend + Retained Earnings.

Ans – (c) Explanation:- The commodity service method is the alternative name value-added Method. The other name of value-added methods are: Product Method Inventory Method Net Output Method Industrial Origin Method Commodity Service Method Value added method

Ans – (d) Explanation:- There are three methods to calculate National Income. Income Method Expenditure Method Value Added Method

Ans – (a) Explanation:- Gross Investment is also known as Gross Domestic Capital Formation and Gross Capital Formation Gross Domestic Capital Formation = Gross Domestic Fixed Capital Formation + Change in inventory

Ans – (d) Explanation:- Winning from lottery does not add to the current flow of goods and services. Milk purchased by a dairy shop is the intermediate consumption and is not included in the national income. National Debt interest is…

Ans – (a) Explanation:- Intermediate Consumption = Purchase of Raw Material Intermediate Consumption = ₹ 1,200 Imports is already included in the purchase of raw material Exports is not the part of purchase of raw material

Ans – (d) Explanation:- Undistributed profits is the profits retained by the firm after the corporate sector and dividends The other name of the undistributed profits are: Savings of private corporate sector Reserves and Surplus Retained Earnings

Ans – (a) Explanation:- (a) The Distributive Share Method is known as the Income method (b) The income disposal method is known and the expenditure method (c) The Industrial Origin Method is known as the product method

Ans – (d) Explanation:- Profits = Corporate Tax + Dividends + Retained Earnings  

Ans – (a) Explanation:- GDP at FC = GDP at MP + Subsidies GDP at FC = ₹ 1,000 + ₹ 50 GDP at FC = ₹ 1,050