National Income and Related Aggregates Test - 18

Macro Economics studies - Employment opportunities in the economy. Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole.

Microeconomics studies individuals and business decisions, while macroeconomics analyzes the decisions made by countries and governments. Microeconomics focuses on supply and demand, and other forces that determine price levels, making it a bottom-up approach.

Flow is a Dynamic concept. It refers to periodic changes in stock.

Final goods need no further process of production and are therefore ready to be consumed. 

Factor income is that income which is received from the factors like land, labour and capital.the income which we get from the use of land is known as rent.

Stock is a Static concept. Stocks do not pertain to changes like flows do.

Indirect taxes are included only in Market price not in factor cost. So NDP at factor cost can be derived by subtracting net indirect taxes from NDP at market price.

Capital formation is a flow. Capital formation is a dynamic process that occurs continuously over a period of time. It involves the creation of new capital goods and the replacement of old and worn-out capital goods. Gross domestic capital formation and gross fixed capital formation are two different measures of investment in an economy, and it is not always true that GDCF is greater than GFCF. Nominal GDP can be less than real GDP if there is deflation in the economy. Bread is a consumer good because it is a final good that is consumed directly by individuals for their personal satisfaction.

Plant leads to further production.

Capital goods are man-made, durable items businesses use to produce goods and services. They include tools, buildings, vehicles, machinery and equipment.

Per capita income is the average income of the country. Per capita real income takes inflation into consideration.