Student Community
Answer
Compensation of Employees refers to amount paid to Employee by Employer for rendering productive services. Explanation:- Compensation of Employees in general terms called wages and salaries paid to employees for providing their factor (productive) services. But compensation of Employees is…
Value Added Method is also known as Industrial Origin Method. Explanation:- If we add up net value added that has taken place in various productions and industries during a year. In order to arrive at the net value added of…
Royalty refers to income received for granting leasing rights of sub-soil assets. Explanation:- Royalty is just the rent earned by giving sub-soil assets on rent (leasing) for a few months and year. Subsoil assets are developed and undeveloped reserves of…
When the entire output is sold in an accounting year, then Value of Output is equal to Sale. Explanation:- When the entire output is sold, the change in inventories is zero Value of Output = Sales + Change in inventories…
Yes, Royalty is part of the operating surplus. Explanation:- Operating surplus refers to income from Property and entrepreneurship. It includes the following items Operating surplus = Income from Property + Income from entrepreneurship Income from Property consists of Income from…
Following are the components of Operating Surplus It refers to income from Property and entrepreneurship. It includes the following items. Profit further can be divided into three components. Dividends:- It is part of the profit distributed among shareholders. It is…
Ans – (b) Explanation:- Statement 1 is false National Income accounts only interest income on loans taken for productive purposes as it adds to the current flow of goods and services. Statement 2 is false Interest income includes both actual…
Ans – (a) Explanation:- Statement 1 is true It refers to income from Property and entrepreneurship. It includes the following items.
Ans – (b) Statements 2 and 2 both are false. Explanation:- Nominal GDP is not a better measure to make periodic comparisons in the physical output of goods and services as its value is affected by both changes in price…
Ans – (c) Explanation:- Statement 1 is true, environmental pollution caused by industrial plants is an example of negative externality. Negative Externalities refer to activities that result in harm to others for example pollution caused by vehicles. Statement 2 is…