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Ans – (c) Final goods are the purchased for the consumption purpose by households and investment purpose by firm (producer).

Ans – (d) Fall in the market value of the motor vehicle is caused by all four reasons such as normal wear and tear, passgae to time and expected obsolescence.  

Ans – (a) Change in demand and change in technology are the expected obsolescence. But Natural Calamities is the unexpected obsolescence.

Ans – (d) Final goods are used by households, firms and government.

Ans – (d) National Income = Domestic Income + Net Factor income from Abroad When Net Factor income from abroad is zero. The National Income income is equal to the domestic income.

Ans – (b) The subsidy is provided by the government to the production units to produce essential goods where the cost of production is high with a condition to sell the goods at a reasonable price. Generally, the price is…

Ans – (b) Sugarcane is used as a raw material to produce the final product Sugar. Thus, Sugarcane becomes part of the final product within a year. Thus it is an intermediate good.

Ans – (b) Explanation:- Domestic income is greater than National Income when net factor income from abroad is negative. Net factor income may be zero, negative and positive. Thus domestic income may be less than, greater than or equal to…

Ans – (d) Market Price = Factor Cost + (indirect tax – subsidies) When there is no indirect tax and no subsidies Market Price = Factor Cost When indirect tax is equal to subsidies Lets indirect tax and subsidies are…

Ans – (c) Explanation:- Goods purchased for satisfaction of wants by household and for investment by firm are final goods.