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Ans: (i) – a, (ii) – b Explanation:- Net Exports is the domestic concept as it is added to the domestic income. Net Factor income from abroad is the national concept as it is added to domestic income to arrive…

Ans: (i) – b Explanation:- Gross Domestic Capital Formation = Gross Fixed Capital Formation + Inventory Investment (change in inventory)

Ans: (i) – b (ii) – a Explanation:- Dividend is the part of the profit that is distributed among shareholders Retained earnings is the part of the profit that is retained by the firm after paying corporate tax and dividend.

Ans – (c) Mixed Income – (iii) Income generated by own-account workers Explanation:- (a) National Income at Current Price is the Nominal National Income not the Real National Income. (b) Value added = Value of Output – Intermediate Consumption (c)…

False, It includes consumption expenditure by the households as well as private non-profit institutions serving households.

True, In case of closed economy, exports are nil as the economy has no economic relations with the rest of the world.

False, Real GDP will increase only when there is an increase in the quantity of output in the economy as Real GDP is measured at constant prices (base Year Prices)

True, An increase in income inequalities will not lead to an increase in the welfare of people in spite of a rise in GDP.

False, It is a negative externality as it affect the health and negatively impacts the welfare of the society.

False, Gross Domestic Product is the result of sum of Gross Value added by all the producing units/firms in an economy, during an accounting year.