Read the following statements carefully :
Statement 1 : Brokerage earned by a dealer of second hand cars is included in the estimation of National Income.
Statement 2 : Imputed value of production for self-consumption is included in National Income.
In the light of the above given statements, choose the correct option from the following :
Read the following statements carefully :
Statement 1 : Brokerage earned by a dealer of second hand cars is included in the estimation of National Income.
Statement 2 : Imputed value of production for self-consumption is included in National Income.
In the light of the above given statements, choose the correct option from the following :
Show Hint
- Statement 1 is true and Statement 2 is false.
- Statement 1 is false and Statement 2 is true.
- Both Statements 1 and 2 are true.
- Both Statements 1 and 2 are false.
The Correct Option is C
Solution and Explanation
National income counts the value of current production of goods and services. The sale of a second hand good is not counted, but a service given in the sale is counted.
Step 2: Check Statement 1:
A dealer of second hand cars earns brokerage, a commission for helping the sale. This commission pays for a service rendered this year.
So it is included in national income. Statement 1 is true.
Step 3: Check Statement 2:
Producers such as farmers keep some output for their own use. The market price does not exist, so its value is imputed (estimated) and added.
So Statement 2 is true.
Step 4: Choose the option:
Both statements are true. Options (A), (B) and (D) each call one statement or both false, which is wrong.
Final Answer:
Both Statements 1 and 2 are true. This is option (C).
Top CBSE CLASS XII Economics Questions
___________ farming is a system that is helpful in restoring, maintaining and enhancing the ecological balance.
(Choose the correct alternative to fill in the blank):The present day rapid industrial growth in China can be traced back to the economic reforms introduced in 1978, where ________ .
(Choose the correct alternative to fill in the blank):
(i) Initially reforms were initiated in agriculture, foreign trade and investment sectors.
(ii) The policy of dual pricing was adopted.
(iii) The Government revoked the policy of Special Economic Zones.Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below:
Assertion (A): In the recent past, Indian economy has been facing the problem of jobless growth.
Reason (R): Jobless growth refers to a situation where an economy is able to produce more goods and services without generating additional employment.Read the following statements carefully:
Statement 1: India, Pakistan, and China have similar physical endowments but totally different political systems.
Statement 2: Both India and Pakistan laid great emphasis on creating a large private sector.Read the following statements carefully:
Statement 1: India, Pakistan and China have similar physical endowments, but totally different political systems.
Statement 2: Both India and Pakistan laid great emphasis on creating a large private sector.
Top CBSE CLASS XII National Income Accounting Questions
- Identify which of the following statements is incorrect with reference to an economy.
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