Match List - I with List - II.

List - I | List - II

(A) Income Method | (I) Calculated at current prices

(B) Expenditure Method | (II) Calculated at constant prices

(C) Real GDP | (III) Aggregate of final expenditures

(D) Nominal GDP | (IV) Aggregate of factor incomes

Choose the correct answer from the options given below :

There are two firms in an economy. Firm A gives Rs. 20 to the workers as wages, and keeps the remaining 30 as its profits. Similarly, firm B gives 60 as wages and keeps 90 as profits. Calculate GDP?

1. Rs. 200
2. Rs. 120
3. Rs. 50
4. Rs. 150

From the following, find the right sequence for measuring National Income by Value Added Method:

(A) Subtract the value of depreciation and net indirect taxes and add net factor income from abroad to arrive at national income.

(B) Estimate the sum total value of output in the primary, secondary and tertiary sectors in the economy.

(C) Estimate the value added of each sector by subtracting intermediate consumption from the value of output for every sector.

(D) Calculate gross value added as the sum of value added of the three sectors.

Identify the correct statement with regards two sector economy model:

A. Total factor income is equal to aggregate consumption expenditure.

B. Consumers can dispose off their earnings through spending their entire income on consumption.

C. Balance of trade surplus.

D. Fair society through progressive tax regime.

Choose the correct answer from the options given below:

Which of the following statements are incorrect ?

(A) Circular flow of income does not take place in a closed economy.

(B) Real flow consists of flow of factor services from households to firms.

(C) In a two-sector economy, total production is always equal to total consumption.

(D) Money flow consists of flow of factor payments from households to firms.

Choose the correct answer from the options given below :

Identify the scenario which would lead to an increase in GDP, but might not necessarily improve overall welfare?

Choose the correct statements:

(A) Intermediate goods are used as raw materials or inputs for production of other commodities.

(B) Consumer goods are consumed when purchased by their ultimate consumers.

(C) Intermediate goods crossed production process boundary.

(D) Capital goods have a durable character which are used in the production process.