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Ans – (a) Explanation:- Exports are included in the output of an economy as these are produced within the domestic territory of the country. Thus assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of…
Ans – (a) Explanation:- Assertion (A) is true as interest paid by government on public debt is not included as public debt is used for consumption purposes. Reason (R) is true as interest paid on loans taken for consumption purposes…
Ans – (c) Assertion (A) is true as production of services for self consumption are not included in national income as market value of these can not be ascertained as non-availability of the data. Reason (R) is false as domestic…
Ans – (d) Assertion (A) is false as Nominal GDP can be equal, greater or less than the Real GDP as per the market price prevailing. Reason (R) is true as real GDP is a better measure to make periodic…
Ans – (a) Explanation:- Yes, there are only three methods (product, income and expenditure) to calculate the national income. Because three different phases of circular flow of income is production, income and expenditure.
No, It will not be included in the domestic factor income as the value of imports are deducted while estimation of domesitc factor income of a country. Explanation:- Imports are deducted while calculating domestic income from the expenditure Method. Domestic…
No, It will not be included in the domestic factor income as financial aid is a transfer income and no factor service is provided in return. Explanation:- Only factor income received against factor services is included in domestic income. The…
No, It will not be included in the domestic factor income as compensation is given by the insurance company to the employee and not by the employer. Explanation:- Only factor income received against factor services is included in domestic income.…
No, It will not be included in the domestic factor income as payment of fees to a Chartered Accountant is an intermediate expenditure for the firm. Hence, it is to be deducted from the value of output of the firm…
Yes, purchase of goods by foreign tourists will be included in the domestic income as goods purchased by the tourist is the expenditure made by him in India. So, these are exports produced within the domestic territory.