394) GDP at factor cost equals the total value added at factor cost of all producers. Which of the following can be used to discover this total?

The total operating surpluses of all producers

The total compensation of employees of all producers

The total compensation of employees of all producers minus the total operating surpluses of all producers

The total compensation of employees of all producers plus the total operating surpluses of all producers

Answer is:

The total compensation of employees of all producers plus the total operating surpluses of all producers

Micro Economics MCQ (GK Set-1) with Answers

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Related Micro Economics MCQ (GK Set-1) with Answers

395) Expenditure in an economy for one quarter of a year is as follows, all figures being at market prices and in billion dollar: Consumption expenditure by households 80, consumption expenditure by non-profit institutions 5, consumption expenditure by general

Answer is:

142 billion dollar

396) GDP at market prices in an economy one year is 1,500 billion dollar. Net income from abroad is 20 billion dollar, net current transfers paid abroad are 15 billion dollar, and capital consumption is 150 billion dollar. Which of the following statements is

Answer is:

Gross national disposable income at market prices is 1,535 billion dollar

397) Country A uses sterling and has a GDP per head of 30,000. Country B uses another currency. If this is converted to sterling at the current exchange rate, its GDP per head is 5,000. Which of the following statements is false?

To get a better comparison of output per head, it would be better to convert country B’s currency into sterling using purchasing power parities (PPPs)

If PPPs were used, it is most likely that B’s output per head would seem closer than it does using exchange rates

Exchange rates generally settle so that the prices of tradable products in each country are similar

PPPs are the rates which ensure that the prices of all products in each country are similar

Answer is:

PPPs are the rates which ensure that the prices of all products in each country are similar

398) Suppose that, over time, the share of manufacturing industry in a country’s GDP falls. Which of the following statements is true? 1. The quantity of the goods and services produced by manufacturing industry must be falling. 2. The value of the go

Answer is:

Neither 1 nor 2

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