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Ans – (d) Explanation:- Services provided for self-consumption are neither included in national income nor in domestic income. Piyush’s Mother teaches Piyush are the service for the self-consumption. The market value of services for the self consumption can not be…

Ans – (d) Explanation:- National Income can be calculated by 3 methods: Value-added Method Income Method Expenditure Method The value of National Income is the same for all three methods. because these are the three phases of the circular flow…

Ans – (c) Explanation:- The broker makes the sale and purchase happen by providing his services as a mediator. His services are productive service as it adds to the current flow of goods and services in the economy. Thus, the…

Ans – (d) Explanation:- Gross Domestic Capital Formation is the addition to the present stock of capital during the year. This investment can be in fixed capital and inventory. Thus it is calculated with the following formulas: Gross Domestic Capital…

Ans – (c) Explanation:- Domestic Income = Compensation of employees + Mixed Income + Rent and royalty + Interest + Profit Domestic Income = Compensation of employees + Income of self-employed + Operating Surplus Here operating surplus is equal to…

Ans – (c) Explanation:- Operating Surplus is the sum of income from property and income from entrepreneurship Income from Property = Rent + Royalty + Interest Income from Entrepreneurship = Profits Operating Surplus = Rent + Royalty + Interest +…

Ans – (b) Explanation:- Value of Output = Sales + Change in Stock When the entire output is sold in an accounting year, the value of change in the stock is zero Change in Stock = ₹ 0 Thus, Value…

Ans – (c) Explanation:- Employee’s contribution to social security schemes is contributed from wages and salaries. It is not contributed separately from employees. Thus if it is added separately, it will lead to double counting. Wages and salaries in cash…

Ans – (d) Explanation:- Bonus to employees is the part of the compensation of employees. It is added to the Domestic Income through Income Method. The Formula is: Domestic Income = Compensation of Employees + Mixed Income + Rent +…

Ans – (b) Explanation:- Net Exports = Exports – Imports Net Exports is the difference between goods exports to the rest of the world and imports from the rest of the world