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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.

Ans – (b) Foreign embassies in India are part of the domestic territory of their native country. However, foreign embassies are considered in the Geographical territory of India.

Ans – (b) The Japanese Embassy in India is considered part of the Domestic territory of Japan. As it is governed by the government of Japan.

Ans – (a) Explanation:- Investment:- It is an addition to the present stock of capital during the year.

Ans – (c) Explanation:- Milk and Bread both are perishable goods and should be used immediately. Thus are non-durable goods

Ans – (d) Explanation:- A refrigerator purchased by a confectionery shop is a final good as it is purchased for investment purposes. Second it will be used to generate revenue and would help in further production, it is a capital…

Ans – (c) Depreciation:- Depreciation refers to a fall in the value of fixed assets due to normal wear and tear, passage of time or forseen obsolescence (change in technology).

Ans – (c) Sugar purchased by a Sweet shop is an intermediate good, while it is a final good when it is purchased by a consumer.