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False, National Income can also be less than domestic income when net factor income from abroad is negative. National Income is always more than the Dometic Income only when net factor income from abroad is positive.
False, Only expected obsolescence is a component of depreciation. Any loss of value of fixed assets on account of any unexpected obsolescence is called Capital Loss and not depreciation.
False, Final goods include those goods which are either consumed by the households or purchased by the producers for investment purposes. Thus, if a firm purchased a good for investment purposes. It is also a final goods.
True, If the end-use of the good is for further production or resale, then the good is an intermediate good. However, if the end-use of the good is consumption or investment, then the good is a final good.
False, It depends on the end use of butter. If butter is purchased by a household, then it is a final good. However, if if is purchased by a bakery shop for making cakes, then it is an intermediate good.
True, Because final goods have crossed the production boundary. The all kind of values are already added to the final goods and it is ready for consumption and investment purposes.
False, The concept applies to institutions also, in addition to individuals.
True, A good can be an intermediate good as well as a final good, depending upon its nature of use. For example, a car purchased by a household is a final good, whereas, it will be an intermediate good if…
False, Market price can be less than factor cost if net indirect taxes (NIT) are negative. Market price can also be equal to factor cost if NIT is zero.
True, It is possible when depreciation (consumption of fixed capital) is Zero