A farmer produces cotton in his farm and sells it to the yarn making firm at Rs 2500. The yarn making firm sells this yarn to the cloth mill for Rs 4000, who make cloth from it and this cloth is sold to a readymade garments factory for Rs 6500. The ready made garments factory sells the garments to the retailer for Rs 9000 and makes a profit of Rs 2000.

Assuming that the farmer does not incur any intermediate cost, what will be total value added in the above process?

Choose the correct statements from the following.

(A) Capital goods are those goods which are bought not for meeting immediate need of the consumer but for producing other goods.

(B) Households refer to the families or individuals who supply factors of production to the firms and which buy the goods and services from the firms

(C) Consumer Price Index is the index of prices of a given basket of commodity which are bought by the representative consumer

(D) Wholesale Price Index refers to the percentage change in the weighted average price level.

Identify the major sectors in the domestic economy.

Which of the following are correct statements regarding Gross Domestic Product (GDP)?

(A) GDP is a measure of the welfare of a country.

(B) Real GDP is measured at current market prices.

(C) Expenditure method estimate =Income Method estimate =Product Method estimate=GDP of a country.

(D) Gross National Product at factor cost = GDP$_{MP}$ + Net factor income from abroad.

Choose the correct answer from the options given below:

1. (A), (B) and (D) only
2. (A), (B) and (C) only
3. (A), (B), (C) and (D)
4. (B), (C) and (D) only

The decision of an individual economic agent is the study of ...................... ?

Match the LIST-I with LIST-II

Choose the correct answer from the options given below:

Net National Product at factor cost (NNP_FC) is defined as :