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Answer
False, Such services will be included in national income as they are part of the Government Final Consumption Expenditure. Explanation:- Government works for the welfare of the society. The market value of all free services contributed by the government can…
False, Any increase in the stock of goods held by a consumer does not contribute to capital formation as it is assumed that such goods are consumed, the moment they are purchased. In other words, the goods purchased by a…
False, It will not be included in national income as it is a non-market transaction and it is difficult to ascertain its market value. Explanation:- Teaching by a teacher to his son involves love and affection. Thus its market value…
True, Such goods contribute to the current output and their imputed value will be included in national income. Explanation:- The goods produced for self-consumption which possess their value (price) in the market is included in the national income. In other…
False, It is a part of private final consumption expenditure. Explanation:- All types of purchase of durable and non-durable by households is the part of private final consumption expenditure.
False, Such rent will be included in domestic income of India as building is located within the domestic territory of India. It will also be included in the national income as it is the income earned by residents in domestic…
False, Nominal GDP can be less than real GDP, if prices in the current year are less than the prices in the base year.
False, It is affected by factor income only. Explanation:- National income only adds the factor income as it adds to the current flow of goods and services in the economy. It is the true indication of employment generation and decline.
False, Measurement of National income at current prices does not provide a reliable base of comparison. Rather, the Measurement of National Income at ‘Constant Prices’ provides a reliable base of comparison. National income at current prices changes with the change…
Government expenditure to popularise yoga among the masses increases (increases/decreases) Welfare. Explanation:- Yoga decreases the risk of fatal diseases, good health increases work efficiency. Thus government expenditure to popularise yoga among the masses increases welfare.