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Ans – (c) A car purchased by a household is a durable consumer good as consumer would avail its services for many years.

Ans – d) Scholarship given to the students is not a factor payment as no productive service or goods are provided against it. Free uniform to defence personnel is the factor payment as they provide services to the nation against…

Ans – (d) Foreign Embassies in India are part of the domestic territory of their native country. For example, the Japanese embassy in India is the part of domestic (economic) territory of Japan, not india.

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.