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When the entire output is sold in an accounting year, then Value of Output is equal to Sale. Explanation:- When the entire output is sold, the change in inventories is zero Value of Output = Sales + Change in inventories…
Yes, Royalty is part of the operating surplus. Explanation:- Operating surplus refers to income from Property and entrepreneurship. It includes the following items Operating surplus = Income from Property + Income from entrepreneurship Income from Property consists of Income from…
Following are the components of Operating Surplus It refers to income from Property and entrepreneurship. It includes the following items. Profit further can be divided into three components. Dividends:- It is part of the profit distributed among shareholders. It is…
Ans – (b) Explanation:- Statement 1 is false National Income accounts only interest income on loans taken for productive purposes as it adds to the current flow of goods and services. Statement 2 is false Interest income includes both actual…
Ans – (a) Explanation:- Statement 1 is true It refers to income from Property and entrepreneurship. It includes the following items.
Ans – (b) Statements 2 and 2 both are false. Explanation:- Nominal GDP is not a better measure to make periodic comparisons in the physical output of goods and services as its value is affected by both changes in price…
Ans – (c) Explanation:- Statement 1 is true, environmental pollution caused by industrial plants is an example of negative externality. Negative Externalities refer to activities that result in harm to others for example pollution caused by vehicles. Statement 2 is…
Ans – (d) Explanation:- Statement 1 is false, national income at current price is not known as real national income. Statement 2 is true, national income at current price is affected by change in both the price and quantity as…
Ans – (a) Explanation:- Net Exports is a domestic concept because exports are a part of domestically produced goods and services, nad are only sold outside the country. Yes exports include factor and non factor services as banking and shipping.…
Ans – (c) Statement 1 is true as Value added is the difference between the value of output and intermediate consumption. Value Added = Value of Output – Intermediate Consumption Statement 2 is false as the distributive method is not…