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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…
False, Bharat also enjoys housing services similar to those people who stay in rented houses. So, the imputed rent of his house will be included in national income. Explanation:- Bharat is enjoying the services of his own house. If he…
False, Gross domestic capital formation can be less than gross fixed capital formation if the change in stock is negative. Explanation:- Gross domestic capital formation is the sum of Gross domestic fixed capital formation Change in stock (Closing stock –…
False, Any contribution made by an employee towards any social security scheme is not a part of the compensation of employees. Explanation;- An employee contributes a certain percentage of its basic salary towards the social security scheme. But it is…
True, Such free samples are part of intermediate consumption expenditure. Thus it will not be included in the national income. Explanation:- National Income only counts the value of final goods. The cost of free samples is the intermediate cost and…
False, Such services will be included in national income as they are part of the Government Final Consumption Expenditure. Explanation:- Government works for the welfare of the society. The market value of all free services contributed by the government can…
False, Any increase in the stock of goods held by a consumer does not contribute to capital formation as it is assumed that such goods are consumed, the moment they are purchased. In other words, the goods purchased by a…
False, It will not be included in national income as it is a non-market transaction and it is difficult to ascertain its market value. Explanation:- Teaching by a teacher to his son involves love and affection. Thus its market value…