ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Included
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Not included
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Either A or B
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None of the above
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Detailed explanation-1: -Purchase of tractor by a farmer. Yes, it will be included in the national income as it is a part of the capital formation or investment by the farmer.
Detailed explanation-2: -Purchase of a tractor by a farmer will be included in the estimation of National Income because it is part of gross domestic capital formation.
Detailed explanation-3: -GDP is composed of goods and services produced for sale in the market and also includes some nonmarket production, such as defense or education services provided by the government. An alternative concept, gross national product, or GNP, counts all the output of the residents of a country.
Detailed explanation-4: -Answer. It is an example of fixed capital as tractor can be used again after a use.
Detailed explanation-5: -Intermediate goods that have been turned into final goods and services (e.g. tires on a new truck) Used goods. Transfer payments. Non-market activities. Illegal goods.