Basic concepts related to national Income

Which of the following are covered under the domestic territory of India?

• State bank of India in London

• Google office in India

• Office of Tata motors in Australia

• Russian Embassy in India

Which one of the following is an intermediate product?

• purchases of pulses by consumers

• Machine purchased by a firm

• wheat purchased by a flour mill

• Wheat used by households

Which one of the following is not an example of final goods?

• Chalk, dusters, etc. purchased by a school

• Fertilizers used by the farmers

• Wheat used by the flour mill

• All of the above

Which of the following constitute the reason for difference between market price and factor cost?

• Indirect taxes

• Subsidies

• Both Indirect taxes and subsidies

• Neither Indirect Taxes nor subsidies

If factor cost is greater than the market price, then it means that:

• Indirect Taxes > Subsidies

• Indirect Taxes = Subsidies

• Indirect taxes < subsidies

• Indirect taxes >= Subsidies

Final goods refer to those goods which are used either for.................... or for........................ .

• Consumption, investment

• Consumption, resale

• Resale, investment

• Resale, further production

Net factor income from abroad is:

• Exports minus imports

• Visible Exports minus visible imports

• Factor incomes received from abroad minus factor incomes paid abroad

• Factor incomes received from abroad

Depreciation means:

• Destruction of a plant in a fire accident

• Loss of fixed assets over time due to wear and tear

• Loss of fixed assets in an earthquake

• Closure of the plant due to lockout

Market price and factor cost will be equal when there is:

• No direct taxes

• No Indirect taxes

• No subsidy

• No Indirect tax and no subsidy

Which of the following is an example of transfer income?

• Bonus

• Unemployment Allowance

• Compensation from the employer

• All of the above