Fill in the blank: NNP at FC _______ = GDP at MP
Ans – (c) Explanation:- GDP at MP = NNP at FC + Depreciation – net factor income from abroad + Net indirect taxes
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If factor income received from abroad is equal to factor income paid abroad, then which of the following is not a valid statement?
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…
Out of the following, which aggregate represents National Income?
Ans – (c) National Income = NNP at FC (Net National Product at Factor Cost) Here, the Product represents the Income
Statement 1: GNP at MP includes goods and services produced by all units located within the domestic territory irrespective of fact whether produced by residents or non-residents.
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…
Statement 1: Domestic Income considers all producers who are normal residents of the country.
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…
Statement 1: Gross Domestic Product at Market Price is a territorial concept
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…
Statement 1: NDP at FC is also known as Domestic Income
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…
Assertion (A): National Income is a national concept.
Ans – (a) Assertion (A) is true as National Income is a national concept Reason (R) is also true as national income includes value of final goods and services produced in the entire world by all producers who are normal…
Assertion (A): Domestic Income is equal to National Income in case of Closed Economy.
Ans – (a) Assertion (A) is true as Domestic Income is equal to National Income in case of closed economy. Reason (R) is also true as closed economy has no economic relations with resto of the world The Reason (R)…
Assertion (A): Domestic Income is a territorial concept
Ans – (c) Assertion (A is true Domestic Income is a territorial concept But Reason (R) is False as Domestic Income includes value of final goods and services produced within the domestic territory.