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Ans – (c) Statement 1: it’s true a person can be a citizen of one country and at the same a resident of another country. An American citizen living earning and spending in India is a resident of India but…
Ans – (b) Statement 1: It’s false, net factor income from abroad is positive when income earned from abroad is more than the income paid to abroad. Statement 2: It’s false Net factor income from abroad is zero in a…
Ans – (d) Statement 1: It’s false, Intermediate goods are not included in national income and domestic income. Statement 2: It’s true, intermediate goods are used in the same year to produce final goods.
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.