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Answer
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…
False, Nominal GDP can be less than real GDP, if prices in the current year are less than the prices in the base year.
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.
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 (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 ₹ 500 Crores. Solution:- Real Gross Domestic Product = Nominal Gross Domestic Product/Price index × 100 Real Gross…
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 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…