National Income in India
- GDP at factor cost is
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GDP at factor coast is GDP at market price minus indirect taxes plus subsidies. GDP at factor cost measure the value of output in terms of what it really cost to produce. However, adjustments have to be made for government subsidies to firms that make up market prices purchasers pay so price plus subsidy represent the true income to factor of production. We can, therefore, value domestic output at prices received by producers after indirect taxes and subsidies have been taken into account.
Correct Option: A
GDP at factor coast is GDP at market price minus indirect taxes plus subsidies. GDP at factor cost measure the value of output in terms of what it really cost to produce. However, adjustments have to be made for government subsidies to firms that make up market prices purchasers pay so price plus subsidy represent the true income to factor of production. We can, therefore, value domestic output at prices received by producers after indirect taxes and subsidies have been taken into account.
- Which is not included in the private income arising in a country?
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A firm sells shares worth ᄙ 1000 direct to individuals. This transaction will cause no impact on Gross National Product as GNP measures the output generated by a country's enterprises (whether physically located domestically or abroad) but here no output is generated.
Correct Option: D
A firm sells shares worth ᄙ 1000 direct to individuals. This transaction will cause no impact on Gross National Product as GNP measures the output generated by a country's enterprises (whether physically located domestically or abroad) but here no output is generated.
- A firm sell shares worth ₹ 1000 direct to individuals. This transaction will cause
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A firm sell shares worth ₹ 1000 direct to individuals. This transaction will cause no impact on Gross National Product as GNP measures the output generated by a country's enterprises (whether physically located domestically or abroad) but here no output is generated.
Correct Option: D
A firm sell shares worth ₹ 1000 direct to individuals. This transaction will cause no impact on Gross National Product as GNP measures the output generated by a country's enterprises (whether physically located domestically or abroad) but here no output is generated.
