Question : Which of the following is not a component of national income?
Option 1: Compensation of employees
Option 2: Operating surplus
Option 3: Taxes on production and imports
Option 4: Subsidies
Correct Answer: Subsidies
Solution : The correct answer is d) Subsidies.
In the calculation of national income, subsidies are not considered as a component of national income. National income measures the total income generated by the production of goods and services within a country's borders over a specific period.
However, subsidies, which are financial assistance provided by the government to individuals, businesses, or sectors, are not considered as part of national income. Subsidies are transfers from the government to support specific activities or sectors and do not represent income generated through production.
Option 4: Net exports
Question : Which of the following is NOT a component of national income?
Option 3: Indirect taxes
Option 4: Net factor income from abroad
Question : Which of the following is correct?
Option 1: Operating surplus = Compensation of employees + profit + interest.
Option 2: Operating surplus = Compensation of employees + rent+ interest.
Option 3: Operating surplus = Rent and royalty + profit + interest.
Option 4: Operating surplus = Compensation of employees + profit + mixed income.
Question : The components of income method includes-
Option 3: Mixed income
Option 4: All of the above.
Question : Which of the following formulas is correct for Gross Value Added(GVA)?
Option 1: (GVA) = Gross National Product – Subsidies + Taxes
Option 2: GVA= Gross Domestic Product – Subsidies + Taxes
Option 3: GVA = Gross National Product + Subsidies – Taxes
Option 4: GVA = Gross Domestic Product + Subsidies – Taxes
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