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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.

Ans – (b) National Income = Domestic Income + Net Factor income from Abroad Net Factor income from abroad = National Income – Domestic Income

Ans – (d) GNP at Market Price can be calculated from any of the following ways. (a) GNP at MP = NDP at FC + Depreciation + Net Indirect taxes + Net Factor Income from Abroad (b) GNP at MP…

Ans – (a) Net Investment = Gross Investment – Depreciation

Ans – (b) Only Factor Income is included in National Income.

Ans – (c) Intermediate goods are still within the production boundary and are not ready for use by their final users.

Ans – (b) Net Indirect Taxes = Indirect Taxes – Subsidies

Ans – (c) Solution:- Net Factor income from abroad = Factor income from abroad – Factor income to abroad ₹ 200 = Factor income from abroad – ₹ 40 Factor income from abroad = ₹ 240 Crores