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True, Expenditure on such own account production, i.e., production for self-consumption will be included in the National Income since these are productive services. Explanation:- If market value of the production for self-consumption is ascertained. It will be included in the…
False, Double Counting can be avoided either by taking the value of final output or by taking value added by each producing unit. Explanation:- Let’s understand with an example: The farmer produces goods and sale it to dealer for ₹…
False, Gross Domestic Capital Formation can be less than Gross Fixed Capital Formation if a change in stock is negative, i.e., when opening stock is more than closing stock. Explanation:- Gross Domestic Capital Formation = Gross Fixed Capital Formation +…
True, Such goods contribute to the current output and their imputed value will be included in national income. Explanation:- in simple words, the market value of goods produced for self-consumption can be ascertained with available data. Thus it adds to…
False, It will be included in national income as it is a part of Government Final Consumption Expenditure. Explanation:- Free services are part of the Government’s Final Consumption Expenditure and are included in national income through the Expenditure Method.
False, It is the part of Private final consumption expenditure. Explanation:- All durable and non-durable purchases of the household is for satisfying the wants. Thus purchase of air conditioner is a consumption good and not for investment purposes. Thus, it…
Ture, It happens because the concept of indirect taxes and subsidies do not arise in a two sector economy due to absesnce of government. Explanation:- Two sector of economy consists of only Households Producers It does not consider governemnt and…
True, It is possible when price level in both the years is same. Explanation:- Real gross domestic product is calculated at the constant (base) Price. Whereas, Nominal gross domestic product is calculated at the current price. For example Base year…
True, It happens when a commodity is purchased for resale. For example, If a mobile shop sells a mobile for ₹ 7,000 after purchasing if for ₹ 6,100, then there is no transformation in mobile, yet value addition is ₹…
True, Such services are not included in national income as it is difficult to ascertain their market value and they are not rendered for earning income. Explanation:- Production of services for self-consumption involves love and affection and are not rendered…