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Answer
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…
True, Such goods contribute to the current output and their imputed value will be included in national income. Explanation:- The goods produced for self-consumption which possess their value (price) in the market is included in the national income. In other…
False, It is a part of private final consumption expenditure. Explanation:- All types of purchase of durable and non-durable by households is the part of private final consumption expenditure.
False, Such rent will be included in domestic income of India as building is located within the domestic territory of India. It will also be included in the national income as it is the income earned by residents in domestic…