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Ans – (d) National Income = Domestic Income + Net Factor income from Abroad When Net Factor income from abroad is zero. The National Income income is equal to the domestic income.

Ans – (b) The subsidy is provided by the government to the production units to produce essential goods where the cost of production is high with a condition to sell the goods at a reasonable price. Generally, the price is…

Ans – (b) Sugarcane is used as a raw material to produce the final product Sugar. Thus, Sugarcane becomes part of the final product within a year. Thus it is an intermediate good.

Ans – (b) Explanation:- Domestic income is greater than National Income when net factor income from abroad is negative. Net factor income may be zero, negative and positive. Thus domestic income may be less than, greater than or equal to…

Ans – (d) Market Price = Factor Cost + (indirect tax – subsidies) When there is no indirect tax and no subsidies Market Price = Factor Cost When indirect tax is equal to subsidies Lets indirect tax and subsidies are…

Ans – (c) Explanation:- Goods purchased for satisfaction of wants by household and for investment by firm are final goods.

Ans – (b) Foreign embassies in India are part of the domestic territory of their native country. However, foreign embassies are considered in the Geographical territory of India.

Ans – (b) The Japanese Embassy in India is considered part of the Domestic territory of Japan. As it is governed by the government of Japan.

Ans – (a) Explanation:- Investment:- It is an addition to the present stock of capital during the year.

Ans – (c) Explanation:- Milk and Bread both are perishable goods and should be used immediately. Thus are non-durable goods