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Ans – (d) Explanation:- Statement 1 is false, national income at current price is not known as real national income. Statement 2 is true, national income at current price is affected by change in both the price and quantity as…

Ans – (a) Explanation:- Net Exports is a domestic concept because exports are a part of domestically produced goods and services, nad are only sold outside the country. Yes exports include factor and non factor services as banking and shipping.…

Ans – (c) Statement 1 is true as Value added is the difference between the value of output and intermediate consumption. Value Added = Value of Output – Intermediate Consumption Statement 2 is false as the distributive method is not…

Ans – (a) Scholarship are transfer payment as receiver does not provide any productive services against it. It does not contribute to any current flow of goods and services in the economy. Thus Assertion (A) and Reason (R) is true…

Ans – (a) Explanation:- Value addition can take place even when a commodity does not go through any transformation. It happens when a commodity (ready to use for consumption) is purchased for resale. For example:- Television purchased by Television dealer…

Ans – (c) Explanation:- Operating Surplus does not arise in the general government sector as the government produces goods and services for the welfare of the society, not for profit. Assertion (A) is true and Reason (R) is false.  

Ans – (a) Explanation:- Exports are included in the output of an economy as these are produced within the domestic territory of the country. Thus assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of…

Ans – (a) Explanation:- Assertion (A) is true as interest paid by government on public debt is not included as public debt is used for consumption purposes. Reason (R) is true as interest paid on loans taken for consumption purposes…

Ans – (c) Assertion (A) is true as production of services for self consumption are not included in national income as market value of these can not be ascertained as non-availability of the data. Reason (R) is false as domestic…

Ans – (d) Assertion (A) is false as Nominal GDP can be equal, greater or less than the Real GDP as per the market price prevailing. Reason (R) is true as real GDP is a better measure to make periodic…