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Ans – (c) Explanation:- Statement 1: It’s true,Factor income is a Bilateral (two-sided) Income as it is received in return for factor (productive) services. Statement 2: It’s false, Factor income refers to income received against rendering any productive services in…

Ans – (a) Explanation:- Statement 1 is true, normal residents include both, individuals and institutions. Statement 2 is also true, International organisations are treated as normal residents of the international area

Ans – (d) Statement 1: It’s False, for the purpose of national income accounting, domestic territory does not mean the political frontiers of a country. domestic territory is different from the political frontier. Statement 2: It’s True, The Indian Embassy…

Ans – (a) Explanation:- Assertion (A): It’s true, depreciation is also termed as consumption of fixed capital. Reason (R): It’s true, that depreciation refers to the value of fixed capital which is used up in the process of production. Reason…

Ans – (c) Assertion (A): It’s true subsidy is a transfer payment. because it is a unitaral (once-sided) transfer. Reason (R): its false, Subsidy does not contributes to current flow of goods and services

Ans – (b) Assertion (A): It’s true transfer income is not included in the national income only factor income is counted in. Reason (R): It’s also true transfer income is a unilateral (one-sided) concept. But Reason (R) does not explain…

Ans – (d) Explanation:- Intermediate goods do not have direct demand. These have derived demand. Their demand depends upon the demand of the final goods. Thus Assertion (A) is False, Reason is True.

Ans (a) True, Factor income is a Bilateral Income and is received against providing factor services to the production process. The Assertion (A) and Reason (R) both are true and Reason is the correct explanation of Assertion (A).

Ans – (b) Increase in stock of capital is known as Capital formation.

Ans – (c) The final goods are used by both consumers and producers. Consumers purchase final goods to satisfy their wants. producer purchases final goods for investment purpose that help to produce final goods and in earning revenue.