Q. Market price and Factor cost will be equal when there are: No direct taxNo Indirect taxNo subsidyNo indirect tax and no subsidy Answer: No indirect tax and no subsidy

Q. Net factor income from abroad is: Exports menu ImportsVisible Exports minus Visible Importsfactor incomes received from abroad minus factor income paid abroadFactor incomes received from abroad Answer: factor incomes received from abroad minus factor income paid abroad

Q. Final goods refer to those goods which are used either fo_______or for______. Consumption, investmentConsumption, resaleResale, investmentResale, further production Answer: Consumption, investment

Q. Which one of the following is not an example of final goods? Chalk, dusters, etc. purchased by a schoolseeds used by the farmersmilk used by a sweets shopAll of the above Answer: All of the above

Q. Which of the following are covered under the domestic territory of India? state bank of India in LondonGoogle office in IndiaOffice of Tata Motors in AustraliaRussian Embassy in India Answer: Google office in India

Q. The flow of goods and services and factors of production across different sectors in a barter economy is known as: Circular FlowReal FlowMonetary FlowCapital Flow Answer: Real Flow

Q. Which one of the following is an intermediate product? Purchase of oil by consumersMachine purchased by firmsWheat used by a flour millsWheat used by households Answer: Wheat used by a flour mills

Q. In a closed economy,………is not included. HouseholdsFirmsGovernmentForeign sector Answer: Foreign sector

Q. Real flow refers to the flow of factor services from…..to……. Firms to householdsHouseholds to firmsFirms to governmentHouseholds to government Answer: Households to firms

Q. Which of the following is the consumption sector? HouseholdsFirmsForeignGovernment Answer: Households