Q. If factor income received from abroad is equal to factor income paid abroad, then which of the following is not a valid statement? National income = Domestic IncomeNDP at FC + Depreciation = GNP at FCNDP at FC + Depreciation = GNP at MPAll are valid Answer: NDP at FC + Depreciation = GNP ...

Q. Foreign embassies in India are a part of India’s Economic territoryGeographical territoryboth a) and b)None of the above Answer: Geographical territory

Q. The Japanese Embassy in India is a part of the domestic territory of IndiaJapanBoth 1 and 2International Area Answer: Japan

Q. Which of the following is an example of Non-durable good? MilkBreadBoth 1 and 2Clothes Answer: Both 1 and 2

Q. A refrigerator purchased by a confectionery shop is an example of Final goodIntermediate goodCapital goodBoth 1 and 3 Answer: Both 1 and 3

Q. Addition to the capital stock of an economy is termed as: InvestmentCapital lossConsumption of fixed capitalAll of these Answer: Investment

Q. Unforeseen obsolescence of fixed capital assets during production is Consumption of fixed capitalCapital lossIncome lossNone of the above Answer: Capital loss

Q. Sugar purchased by a Sweet shop is an……good, while it is a ……good when it is purchased by a consumer Capital, finalfinal, intermediateintermediate, finalfinal, producer Answer: intermediate, final

Q. Depreciation of fixed capital assets refers to: Normal wear and tearForeseen obsolescenceNormal wear and tear & foreseen obsolescenceUnforeseen obsolescence Answer: Normal wear and tear & foreseen obsolescence

Q. Which of the following is an example of an intermediate goods? Car sold by a dealer of second-hand carsSteel and Cement used to construct a flyoverFertilizers purchased by a farmerAll of the above Answer: All of the above