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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
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…