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Ans – (d) Car purchased by a dealer of second-hand cars is meant for resale, thus an intermediate goods. Steel and cement used to construct a flyover is used as raw material to produce final goods (flyover). Thus, is an…

Ans – (b) Unemployment Allowance is the transfer income as no productive services and goods are provided against unemployment allowance.

Ans – (d) Market Price = Factor Cost + Indirect Tax – Subsidy when Indirect tax and subsidy both are zero. The market price becomes equal to factor cost.

Ans – (b) Depreciation is the loss of fixed assets over time due to wear and tear. Destruction of a plant in a fire accident, loss of fixed assets in an earthquake, and closure of the plant due to lockout…

Ans – (c) Net Factor income from abroad = Factor income from abroad – Factor income to abroad

Ans – (a) Final goods are those goods which are used by household for consumption purposes to satisfy their wants and by producers (Firm) for investment purposes.

Ans – (c) When subsidies are greater than Indirect taxes, factor cost becomes greater than market price.

Ans – (c) Explanation:- Market Price = Factor Cost + Indirect taxes – Subsidies

Ans – (d) Chalk, dusters purchased by school is an intermediate goods Fetilizers used by the farmers is an intermediate goods What used by the flour mill is an intermediate goods

Ans – (c) Wheat used by a flour mill is used to make flour which is the final product. Thus it is the intermediate product.