Archives Answers

Ans – (d) Explanation:- A refrigerator purchased by a confectionery shop is a final good as it is purchased for investment purposes. Second it will be used to generate revenue and would help in further production, it is a capital…

Ans – (c) Depreciation:- Depreciation refers to a fall in the value of fixed assets due to normal wear and tear, passage of time or forseen obsolescence (change in technology).

Ans – (c) Sugar purchased by a Sweet shop is an intermediate good, while it is a final good when it is purchased by a consumer.

Ans – (d) Car purchased by a dealer of second-hand cars is meant for resale, thus an intermediate goods. Steel and cement used to construct a flyover is used as raw material to produce final goods (flyover). Thus, is an…

Ans – (b) Unemployment Allowance is the transfer income as no productive services and goods are provided against unemployment allowance.

Ans – (d) Market Price = Factor Cost + Indirect Tax – Subsidy when Indirect tax and subsidy both are zero. The market price becomes equal to factor cost.

Ans – (b) Depreciation is the loss of fixed assets over time due to wear and tear. Destruction of a plant in a fire accident, loss of fixed assets in an earthquake, and closure of the plant due to lockout…

Ans – (c) Net Factor income from abroad = Factor income from abroad – Factor income to abroad

Ans – (a) Final goods are those goods which are used by household for consumption purposes to satisfy their wants and by producers (Firm) for investment purposes.

Ans – (c) When subsidies are greater than Indirect taxes, factor cost becomes greater than market price.