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Ans – (b) Explanation In a closed economy, there is no economic activity with the rest of the world. Thus Net factor income from abroad is zero. National Income = Domestic Income + NFIA National Income = Domestic Income  

Ans – (d) Explanation:- Operating Surplus = Rent + Royalty + Interest + profit

Ans – (b) Explanation:- National Income at Market Price – Net indirect taxes (indirect taxes – Subsidies) National Income at Factor cost = National Income at Market Price + Subsidies – indirect taxes We would still get National Income but…

Ans – (c) Explanation:- GDP at MP = NNP at FC + Depreciation – net factor income from abroad + Net indirect taxes

Ans – (c) Explanation:- When factor income received from abroad is equal to factor income paid abroad. The NFIA is zero Net Factor income from abroad = Factor income from abroad – Factor income to abroad Net Factor income from…

Ans – (c) National Income = NNP at FC (Net National Product at Factor Cost) Here, the Product represents the Income

Ans – (b) Statement 1 is false Reason:- GNP at MP includes goods and services produced only by residents within or outside the domestic territory of a country. Statement 2 is false Reason:- GNP at MP can be equal to…

Ans – (d) Statement 1 is false Domestic Income considers all producers who are normal residents and non-residents of the country. Statement 2 is true Domestic income only includes the value of goods and services produced within the domestic territory…

Answer – (c) Statement 1 is true as Gross Domestic Product at Market Price is a territorial concept Reason:- Gross Domestic Product is the sum of the value of goods and services produced within the domestic territory of a country…

Ans – (a) Statement 1 is true NDP at Fc (Net Domestic Product at Factor Cost) is also known as Domestic Income. Statement 2 is true as NDP at FC is less than NNP at FC when net factor income…