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National Income and Related Aggregates Remembering, , . National income is sum of all the transfer income generated in an economy., . NDFfe is equal to NDPmp less Net Indirect Tax., , . Double counting can be avoided by summing up total output of firms., NNPmp is equal to NNPfc when Net Indirect Tax are Zero., , . Expenditure on electricity by factory is an intermediate cost for the factory., , UbwNe, , Understanding, , 6. Bus fare paid by passengers is a final consumption expenditure., , 7. NDPmp is the sum up of operating surplus, compensation of employees,, mixed income and Net Indirect Tax., , 8. GDPmp is inclusive of indirect taxes but exclusive of subsidies., , 9. Salary of an Indian working in Russian embassy in india is included in, National Income of India as Factor income from abroad., , 10.Income tax is included for calculating national income by income method., , Applying, , 11.Old age pension is factor income. Ans True, , 12.National income can be less than domestic income if FIFA > FITA. Ans:, False, , 13.If NDPfc = 80, NIT =10, Net factor income from abroad (-10), NNPmp is, equal to Rs.70, Ans. False, , 14.National Income is a flow concept as it measured for an accounting year and, not at a point of time. Ans: True, , 15.NVAfe = factor payments. Ans: True, , Evaluating and Analyzing, , 16.Brokerage on the sale and purchase of shares and bonds is to be included in, national income., , 17.If Nominal GNP is Rs.1200 and Real GNP is 400, then GNP deflator will be, Rs.200., , 18.In a soap factory 5000 cakes @ 10 per unit of soaps remain unsold at the end, of financial year, if stock was zero at the beginning of the year. In this, situation inventory investment will be Rs.50000., , 19.When a farmer keeps a part of crop grown on his farm for consumption by, his family, it will be counted as final consumption expenditure., , 20.Increase in the prices of stock lying with a trader must be added to calculate, National Income by Value added method.