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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

Answer – b) Explanation:- The secondary sector is concerned with the Manufacturing Sector. In the Manufacturing sector, raw material is converted into final products. Thus converting wheat into wheat flour is concerned with the Secondary sector.

Ans – c) The Tertiary Sector is concerned with the service sector. The Police department provides the services to maintain the law and order.

Ans – a) Explanation:- The first phase of the circular flow is the production phase where the goods are produced by the household. In this phase, the value is added to the intermediate goods and that is converted into final…