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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 (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 (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…
Value added is a Flow (Flow/Stock) variable. Explanation:- Value added is gross domestic product. It is measured over a period of time. for example, the gross domestic product of India is measured for a fiscal year that is 12 months.…
Higher production of Consumption (Capital/Consumption) goods promote welfare of people in the economy. Explanation:- As per economics, Higher is the consumption more is the welfare
Real GDP is better than Nominal GDP as it truly reflects the growth of an Economy. Explanation:- Real GDP is calculated at the base price. It changes when the quantity produced changes. If the Quantity produced is less, it decreases…
When GDP of a given year is estimated on the basis of price of the same year, it is called Nominal GDP or GDP at Current Price.
Profit = Corporate Tax + Dividend + Retained Earnings. Explanation:- Profit is in the income from entrepreneurship. First corporate tax is paid out of it. From the rest, the dividend to the shareholders. The rest is the retained earnings of…
Operating Surplus does not arise in the General Government sector as it works with the motive of social welfare. Explanation:- The general Government only works for the welfare of the people. The income from property and entrepreneurship does not arise…
Net Exports refers to difference between Exports and Imports of a country during a period of one year. Explanation:- Net Exports – Exports – Imports