Nominal GDP can never be less than Real GDP
False, Nominal GDP can be less than real GDP, if prices in the current year are less than the prices in the base year.
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National income is affected by both factor as well as transfer incomes.
False, It is affected by factor income only. Explanation:- National income only adds the factor income as it adds to the current flow of goods and services in the economy. It is the true indication of employment generation and decline.
Measurement of national income at current prices provides a reliable base of comparison.
False, Measurement of National income at current prices does not provide a reliable base of comparison. Rather, the Measurement of National Income at ‘Constant Prices’ provides a reliable base of comparison. National income at current prices changes with the change…
Government expenditure to popularise yoga among the masses _____ (increases/decreases) Welfare.
Government expenditure to popularise yoga among the masses increases (increases/decreases) Welfare. Explanation:- Yoga decreases the risk of fatal diseases, good health increases work efficiency. Thus government expenditure to popularise yoga among the masses increases welfare.
When Nominal Gross Domestic Product (GDP) is ₹ 850 crores and price index is 170, Real Gross Domestic product (GDP) will be ____.
When Nominal Gross Domestic Product (GDP) is ₹ 850 crores and price index is 170, Real Gross Domestic product (GDP) will be ₹ 500 Crores. Solution:- Real Gross Domestic Product = Nominal Gross Domestic Product/Price index × 100 Real Gross…
Rent + Interest + Profit = ______.
Rent + Interest + Profit = Operating Surplus. Explanation:- Operating Surplus is the income that arises from property and entrepreneurship. The income arises from the property are: Rent Interest The income arises from entrepreneurship are: Profit Thus, Operating Surplus =…
Net Domestic Fixed Capital Formation + Change in Stock = _____.
Net Domestic Fixed Capital Formation + Change in Stock = Net Domestic Capital Formation. Explanation:- Net domestic capital formation is the sum total of investment in fixed assets and stock during a year after depreciation. Thus Net Domestic capital formation…
Combined factor income, which can’t be separated into various factor income components is known as _____.
Combined factor income, which can’t be separated into various factor income components is known as Mixed Income of the Self Employed. Explanation:- The mixed income of the self-employed can not be separated into various factor income. Thus, the income of…
To compare the GDP figures of different countries, ____ (Real GDP/Nominal GDP) gives better results.
To compare the GDP figures of different countries, Real (Real GDP/Nominal GDP) gives better results. Explanation:- Real GDP is better than Nominal GDP as it truly reflects the growth of an Economy. Real GDP is calculated at the base price.…
____ (Exports/Imports) denote aggregate expenditure incurred by rest of the world on final goods and services produced in the domestic territory of the country.
Exports (Exports/Imports) denote aggregate expenditure incurred by rest of the world on final goods and services produced in the domestic territory of the country. Explanation:- Exports are the goods and services produced in the domestic territory of the country. these…