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Ans – c) Explanation:- Petrol and diesel-driven vehicles raise welfare as it reduces the time of distance travel. At the same time, such vehicles spread air pollution that reduces the life of countries citizen

Ans – c) Explanation:- Real GDP = Nominal GDP/Price Index * 100

Ans – d) Explanation:- Welfare refers to the overall well-being of every citizen of a country. The overall GDP is the total of all residents of a country. But it does not show per-person income. It may be few people…

Ans – c) Explanation:- The income method considers income paid out the angle to factors against services rendered. Thus rent is a payment to factor who provides the land on rent for production.

Ans – b) Explanation:- The income method is concerned with 2nd phase of the Circular Flow of income. Where income generated in the 1st phase (production phase) is paid to out factors of production (Household). Thus Income method measures the…

Ans – c) Explanation:- The expenditure Method only considers the final expenditure by Household, Government, and Business

Ans – d) Explanation:- Operating Surplus is the factor payments arising from the property as (Rent, Royalty and Interest0 and income from entrepreneurship profit) Operating Surplus:- Rent + Royalty + Interest + Profit Read More Information:- What is Operating Surplus

Ans – c) Explanation:- The rent paid by the employer to an employee for his residence is part of the compensation of the employee

Ans – d) Explanation:- National income  = NDP at FC + NFIA The production unit contributes the value added at factor cost (NDP at FC) NDP at FC = Value of output – Intermediate costs – depreciation – Net indirect…

Ans – c) Explanation:- Value Added (GDP at MP) = Sales + Net change in stock – Intermediate Costs