Identify the correct statement from the following:

A. The Household's investing is not considered to be the cost of building a residence

B. Net factor revenue from overseas includes money from Exports

C. The sum of factor incomes equals the net value added

D. The assessment of national income takes into account the market value of both final and intermediate items

E. Profit earned by non-resident company in India is a part of domestic income of India

Choose the correct answer from the options given below:

Question

Accepted Answer

C, E only

Answer

A, D only

Answer

B, E only

Answer

D, E only

List-I	List-II
(A) GDP at constant price	(i) known as Nominal GDP
(B) GDP at current price	(ii) Increases only when there is increase in the quantum of output in the economy.
(C) Welfare of the people	(III) known as earned income
(D) Factor income	(IV) Measured in terms of the availability of goods and services

List–I	List–II
(A) Gross Domestic Product at Market Prices (GDPₘₚ)	(I) All the economic output produced by a nation’s normal residents, whether they are located within the national boundary or abroad.
(B) Net Domestic Product at Market Prices (NDPcₘₚ)	(II) Sum of income earned by all factors in the production in the form of wages, profits, rent and interest, etc., belonging to a country during a year.
(C) Gross National Product at Market Prices (GNPₘₚ)	(III) All production done by the national residents or the non-residents in a country gets included, regardless of whether that production is owned by a local company or a foreign entity.
(D) National Income (NI)	(IV) Income earned by the factors in the form of wages, profits, rent, interest, etc., within the domestic territory of a country.

Solution