Q. Gross domestic capital formation is the sum total of: expenditure on fixed assetsgross domestic fixed capital formation and change ins stocknet domestic fixed capital formation + inventory investment + depreciationboth 2 and 3 Answer: both 2 and 3

Q. Value-added refers to:- production of durable goodsoutput – intermediate consumptionproduction of non-durable goodsexpenditure on intermediate goods Answer: output – intermediate consumption

Q. Value added method measures the contribution of which of the following within the domestic territory of a country? Household consumersThe producing enterprises owned by residents of the countryThe producing enterprises owned by the non-residents of the countryBoth 2 and 3 Answer: Both 2 ...

Q. own account production of goods is included in national income because: goods are tangibletheir valuation is possiblegoods are more productive than servicesNone of these Answer: their valuation is possible

Q. Household inventory is: not included in national incomea stock conceptboth 1 and 2None of these Answer: both 1 and 2

Q. The impact of an externality is: PositiveNegativeeither positive or negativeneither positive nor negative Answer: either positive or negative

Q. GDP Deflator = Real income/Nominal income * 100Nominal Income/Real Income * 100Real Income/Population * 100None of these Answer: Nominal Income/Real Income * 100

Q. Which of the following makes GDP an inappropriate index of welfare? Non-monetary trAnswer:actionsExternalitiesComposition and distribution of GDPAll of these Answer: All of these

Q. National income refers to: factor incomes onlyincome of only normal residents of the countrythe sum total of domestic income and net factor income from abroadall of these Answer: all of these

Q. National income (NNP at FC) is equal to: GNP at FC + depreciationGNP at FC – depreciationNNP at mp – Net indirect taxesboth 2) and 3) Answer: both 2) and 3)