Macro

National Income

Medium

Identify the correct statement from the following.

A car purchased by a taxi driver is a capital good.

A television purchased by a family is a capital good.

Copper used in making utensils is a capital good.

Computers purchased by an educational institution are intermediate goods.

✅ Correct Option: 1

Option 1 -> A taxi driver uses the car to generate income by providing transportation services, making it a capital good used in production.

Option 2 -> A television purchased by a family is for personal consumption and entertainment, not for production, so it is a consumer good, not a capital good.

Option 3 -> Copper is a raw material that gets transformed during the production of utensils, making it an intermediate good, not a capital good.

Option 4 -> Computers are fixed assets used by the institution to provide educational services over multiple years, making them capital goods, not intermediate goods.

Hence, Option 1: A car purchased by a taxi driver is a capital good. -> Capital goods are assets used in the production of goods or services over a period of time. Since the taxi driver uses the car as a tool to provide transportation services and earn income (production activity), it qualifies as a capital good. Capital goods are distinguished from consumer goods (used for personal satisfaction) and intermediate goods (used up in production). -> correct

2023: 28 May Shift 2

National Income can also be called :

2022: 10 Aug Shift 2

Suppose a country only produces bread. In the year 2000 it had produced 100 units of bread, price was Rs. 10 per bread. In 2001, the same country produced 110 units of bread at price was Rs. 15 per bread. In 2001, the nominal and real GDP are : (base year is 2000)

2025: 28 May Shift 1

Which of the following is correct regarding National Income Accounting ?

In order to compare the GDP figures of the same countries at different points of time, nominal GDP is used.
In order to compare the GDP figures of different countries, real GDP is used.
Flows are defined at a particular point of time.
Stocks are defined over a period of time.

2025: 30 May Shift 1

Identify the flow variable from the following:

2022: 30 Aug Shift 2

Which of the following components, is NOT a part of compensation of employees, while estimating national income ?

2025: 29 May Shift 2

It may be incorrect to treat GDP as an index of the welfare of the country for the following reasons.

(A) Externalities.

(B) Distribution of GDP is not uniform.

(D) Non-monetary exchanges.

Choose the correct answer from the options given below:

Identify the correct statement from the following.

Solution

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