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Ans – (b) Explanation:- Services for self-consumption are not included in the national income as the market value can not be estimated due to the non-availability of the date. Such services involve love and affection and it is price-less. A…
Ans – (a) Explanation:- Net factor income from abroad is part of National Income. It is added to the domestic income to get the National Income National Income = Domestic Income + Net Factor income from abroad Compensation of employees,…
Ans – (c) Explanation:- Income earned by a factor of production is entirely expended on purchasing the goods and services produced by the firm. This is the phase where income earned is disposed of. The expenditure is also called the…
Ans – (c) Explanation:- Value of output = Sales + Change in stock If the whole quantity is sold, the change in the stock is zero Value of Output = Sales Value added = Value of Output – Intermediate Consumption…
Ans – (b) Explanation:- It is the formula to calculate Real GDP is Nominal GDP and the price index is given. Real GDP = Nominal GDP/Price Index × 100
Ans – (c) Explanation:- Value added = Value of Output – Intermediate Cost
Ans – (b) Explanation:- Money won in a lottery is a kind of transfer payment and does not add to the current flow of goods and services. Thus it would not be included in the national income.
Ans – (c) Explanation:- Service sectors such as transport, banking and shipping, and communication come under this sector. The tertiary sector provides services to the primary and secondary sectors.
Ans – (a) Explanation:- National product at current prices is measured at the current prevailing prices in the market. Whereas, national product at constant prices is measured at the base year price. If, current market price is higher than the…
Ans – (b) Explanation:- the following formula is justified from the Income method NDP at FC (Domestic Income) = Compensation of employees + Operating Surplus + Mixed Income of self employed GDP at MP derived from NDP at FC after…