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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…

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)…

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.  

Ans:- (i) – e (ii) – d (iii) – a (iv) – c (v) – b

Ans:- (i) – (a) NDP at FC = GNP at MP – Depreciation – Net Factor income from abroad – Net indirect taxes

Answer – (i) – (b) GNP at MP = NDP at FC + Depreciation – Net Factor income to abroad + Net Indirect Taxes

Ans – (b) NDP at MP = GDP at FC – Depreciation + Net Indirect Taxes  

Answer:- False, The domestic product includes the contribution of all the producers (whether resident or non-resident) who are within the domestic territory of the country.

True, It is possible when the factor income paid abroad is more than the factor income received from abroad. For example Let’s assume Domestic Income = ₹600 Crores Factor income from abroad = ₹ 100 Crores Factor income to abroad…

True, In a closed economy, the gross domestic product is always equal to the gross national product. It happens because net factor income from abroad is zero due to no interaction with the rest of the world. For Example:- Gross…