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Which of the following statements is not correct about national accounting?
- a)Net factor income earned from abroad is equal to GNP at factor cost minus GDP at factor cost.
- b)GDP at market prices is always less than GNP at market prices.
- c)In national accounting terminology, savings and taxes are perceived as leakages in the economy.
- d)GDP at factor cost includes no tax and excludes no subsidies.
Correct answer is option 'B'. Can you explain this answer?
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Which of the following statements is not correct about national accoun...
Net factor income earned from abroad is the income earned by Nationals working overseas minus income paid to outsiders working in Indian Territory. Since GNP is the income earned by Nationals anywhere in the world; therefore GNP at factor cost- GDP at factor cost is equal to Net factor income earned from abroad. So statement (a) is correct.
GDP can be either less than or more than or equal to GNP depending on the value of Net factor income earned from abroad. So statement (b) is not correct.
In economics, leakage is a diversion of funds from some iterative process. For example, in the Keynesian depiction of the circular flow of income and expenditure, leakages are the non-consumption uses of income, including saving, taxes, and imports. So statement (c) is correct.
GDP at factor cost = GDP at market prices – taxes + subsidies. Hence, GDP at factor cost includes no tax and excludes no subsidies. So, statement (d) is correct. Therefore, the answer is (b).
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Which of the following statements is not correct about national accounting?a)Net factor income earned from abroad is equal to GNP at factor cost minus GDP at factor cost.b)GDP at market prices is always less than GNP at market prices.c)In national accounting terminology, savings and taxes are perceived as leakages in the economy.d)GDP at factor cost includes no tax and excludes no subsidies.Correct answer is option 'B'. Can you explain this answer?
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Which of the following statements is not correct about national accounting?a)Net factor income earned from abroad is equal to GNP at factor cost minus GDP at factor cost.b)GDP at market prices is always less than GNP at market prices.c)In national accounting terminology, savings and taxes are perceived as leakages in the economy.d)GDP at factor cost includes no tax and excludes no subsidies.Correct answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following statements is not correct about national accounting?a)Net factor income earned from abroad is equal to GNP at factor cost minus GDP at factor cost.b)GDP at market prices is always less than GNP at market prices.c)In national accounting terminology, savings and taxes are perceived as leakages in the economy.d)GDP at factor cost includes no tax and excludes no subsidies.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statements is not correct about national accounting?a)Net factor income earned from abroad is equal to GNP at factor cost minus GDP at factor cost.b)GDP at market prices is always less than GNP at market prices.c)In national accounting terminology, savings and taxes are perceived as leakages in the economy.d)GDP at factor cost includes no tax and excludes no subsidies.Correct answer is option 'B'. Can you explain this answer?.
Which of the following statements is not correct about national accounting?a)Net factor income earned from abroad is equal to GNP at factor cost minus GDP at factor cost.b)GDP at market prices is always less than GNP at market prices.c)In national accounting terminology, savings and taxes are perceived as leakages in the economy.d)GDP at factor cost includes no tax and excludes no subsidies.Correct answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following statements is not correct about national accounting?a)Net factor income earned from abroad is equal to GNP at factor cost minus GDP at factor cost.b)GDP at market prices is always less than GNP at market prices.c)In national accounting terminology, savings and taxes are perceived as leakages in the economy.d)GDP at factor cost includes no tax and excludes no subsidies.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statements is not correct about national accounting?a)Net factor income earned from abroad is equal to GNP at factor cost minus GDP at factor cost.b)GDP at market prices is always less than GNP at market prices.c)In national accounting terminology, savings and taxes are perceived as leakages in the economy.d)GDP at factor cost includes no tax and excludes no subsidies.Correct answer is option 'B'. Can you explain this answer?.
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